Friends Provident adds international property funds

Friends Provident, the FTSE 100 life and pensions company, has added international property funds from Morley and New Star to its wealth management proposition fund range.

The Friends Provident Global Property Fund, created specifically for Friends Provident by Morley, aims for capital growth by investing in a range of property investments to provide a globally diversified portfolio. It provides investors with access to a mix of UK, Continental European and Global property markets through a range of property funds managed by Morley. At launch 35% of the fund will be invested in European (excluding UK) Direct Property, 16% in UK Direct Property, 26% in Global Property Securities, 8% in UK Property Securities and 13% in European (excluding UK) Property Securities.

The New Star International Property Fund, the UK’s first authorised, open-ended direct international property fund, aims to achieve long-term capital growth and income by investing mainly in International Commercial Property. It also invests in property-related securities. Initially investment will focus on Western Europe, Central Europe, Asia and the Pacific Rim, with the intention of broadening international exposure as the fund grows.

Both funds are available only to investors through Friends Provident’s Investment Portfolio Bond and Discounted Gift Bond products.

Christine Foyster, head of wealth management marketing at Friends Provident, said: “The demand for an international property option has been increasing in line with the rise in popularity of UK commercial property. Through our unique Global Property Fund we are providing a single-fund solution, blended to provide a portfolio with the characteristics of a UK Property fund but with greater diversity. The New Star International Property Fund offers the solution required by investors who require access to ex-UK Property.”

Ian Gleeson, head of international multi-manager at Morley Property, said: “We are delighted to be managing the Friends Provident Global Property Fund, which gives investors the opportunity to access global property markets. Since the fund invests in an actively managed blend of property sub funds combining direct property and property related securities, investors have exposure to a diverse range of property investments.”

Rob Page, marketing director, New Star Investment Funds, said: “New Star has worked hard in conjunction with our strategic partners to bring this innovative new fund to the retail investor. We have seen strong demand for the International Property Fund and look forward to working closely with Friends Provident to ensure that the advantages of international direct commercial property are available to everyone.”

The addition of the Friends Provident Global Property Fund and the New Star International Property Fund brings the total number of funds to 110.