First MM foray into European property

In a separate move, F&C's Multi-Manager Distribution fund has recently invested in the Invista European Real Estate fund, a closed ended Guernsey-listed European property fund.

The €408m fund invests in bricks and mortar as opposed to shares with a yield of around 6%. The fund invests in commercial property in Continental Europe and predominantly in Germany, with limited exposure to Eastern Europe.

"This is our first sole foray into property outside the UK. Having had dealings with Invista before, we knew the company well and felt the fund offered quality income, a good management team and great prospects for both capital and income appreciation" said Philbin.

"The Continental European economic cyclical is different from the UK. Having a European property exposure provides a degree of diversity, reducing risk in the event that the UK economy really starts to slow. We bought the fund on 20th December at £2 and its share price is now at £2.17, an 8.5% increase in just three weeks," he concluded.