TIME Investments launches hybrid property fund offering access to listed real estate securities and direct long income properties
TIME Investments (TIME), which specialises in asset-backed and income producing investments across real estate, infrastructure, renewable energy and lending, has launched TIME:Property Long Income & Growth (the Fund), an innovative hybrid property fund which combines a portfolio of primarily UK listed real estate securities and directly held long income properties in defensive and economically sustainable sectors. It is designed to provide retail investors with a consistent and attractive level of income - and capital growth prospects.
The Fund has been launched to fill a gap in the market by providing investors with a unique way of gaining exposure to the real estate market, with a greater level of liquidity than a fund of solely directly held properties and lower volatility than a portfolio of just listed real estate securities. TIME:Property Long Income & Growth also seeks to provide a degree of inflation protection and an attractive diversification opportunity against a portfolio of wider equities.
TIME is part of the Alpha Real Capital Group with over GBP4 billion of assets under management. Most of these assets are in defensive and secure income real asset strategies. The group manages long leases across both the commercial and social infrastructure sectors. The investment philosophy of the Fund is therefore closely aligned with that of the Group, blending the expertise of managing long income property in the private markets with its experience in investing in listed markets. The Fund provides exposure to a portfolio of experienced institutional real estate managers that have built portfolios of high-quality assets. TIME:Property Long Income & Growth is co-managed by Stephen Daniels, Roger Skeldon and Chris Cox, CFA, with oversight provided by the Investment Committee.
The Fund is actively managed and has a long-term approach to investing. The investment process is top-down and bottom-up, designed to blend both quantitative and qualitative analysis with the expertise of the specialist long income property team within the Group. The asset allocation of the Fund is:
UK real estate securities – 47.5 per cent
Direct long income property – 35 per cent
Non-UK real estate securities – 10 per cent
Cash – 7.5 per cent
The Fund is seeking to invest in a diversified range of economically sustainable sectors. In essence, these are sectors that have attractive long-term characteristics primarily driven by their favourable market dynamics and attractive fundamentals which will support the continuation and growth in the long-term revenue streams of the underlying tenants. The portfolio will have no direct exposure to high street retail or office sectors.
Roger Skeldon, Co-Fund Manager, says: “We have launched the Fund for investors who want to maintain exposure to direct real estate but with greater liquidity, and benefit from attractive and consistent levels of income relative to equity and fixed income markets. Investors can benefit from TIME’s market-leading expertise in the long income property sector as well as exposure to a portfolio of experienced institutional real estate managers.”
Chris Cox, CFA, Co-Fund Manager, says: “By focusing on sustainable sectors such as supermarkets and healthcare, which offer long-term growth in revenue streams and inflation-linked rent increases, the new fund enables investors to own a diversified portfolio of real estate securities which should continue to perform well against the backdrop of rising inflation and the possibility of interest rate increases.”
Ben Yearsley of Shore Financial Planning said of TIME:Property Long Income & Growth, says: "The hybrid approach seems the obvious future for property funds. The mix of some unique physical property combined with liquid REITs is a compelling proposition. TIME’s new fund offers exactly this through real estate securities and direct property exposure in sectors set for long-term growth."
The minimum investment for retail investors is GBP5,000. Investors are able to access the Fund through ISAs, SIPPs, SSASs and offshore bonds via income or accumulation shares.