FUND OF FUNDS
Real Estate Fund of Funds are a recent development in the UK Investment Market. The growth of unlisted property funds since 2000 has greatly increased the range of investment opportunities. Many of the best quality properties are now owned in specialist unlisted property funds. Previously, access to these high quality assets was only available to the largest investors. Property Fund of Funds offers a wide range of investors access to the performance of these high quality assets.
RELATED LINKS:
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Spectrum UK Fund Documents:
Why fund of funds?
A fund of funds approach offers the following:
Diversification
Through investment in a range of specialist funds, Spectrum allows investors to pool capital and diversify their risk across multiple properties, regions, property types, tenants and managers.
Ability to adapt to exploit market conditions
Transactions can often be executed more quickly than investment directly in real estate in order to best exploit changing market conditions.
Efficient asset allocation
Investment into pooled funds can often be in smaller amounts than with direct property, allowing a more efficient investment allocation.
Potential for reduced transaction costs
Unlike investments in direct property, currently stamp duty land tax is not charged. This can reduce transaction costs and make strategic changes to portfolio structure quicker and more attractive.
