Cazenove Capital Management is to launch a common investment fund for charities that will focus on UK commercial property.
The Multi-Strategy Property Trust for Charities, which is Cazenove's fifth common investment fund, will aim to deliver an absolute return of 8 per cent a year, with a distributable yield of 5 per cent. The minimum subscription will be £50,000.
"Our charity clients want to reduce their portfolio risk and diversify their funds so that they comprise a full range of equity, bonds, hedge funds and property," said Jeff Hayes, Cazenove's head of institutional and charity clients.
"A problem with direct property can be investing the liquidity of the fund in a timely manner," Hayes added. "With the multi-strategy approach, we will use a combination of direct property, third-party funds and property index certificates to overcome this. In our view, this is an innovative solution."
Property investment specialist Protego Real Estate Investors will be adviser to the fund.