Hearthstone Investments yesterday announced that it would launch a residential property fund in the first quarter of 2011 and has hired David Gibbins as fund manager. The fund will be ungeared and it will seek to track the performance of the UK residential property market as well as provide a modest income return. Ungeared returns from residential property have averaged around 16 per cent a year since 1970. Gibbins was previously residential fund manager for Goodman Property Investors before joining Hearthstone and also has had experience at Morley Fund Management and estate agent Cluttons.
F&C UNVEILS NEW EUROPEAN INCOME FUND
F&C Investments has launched a new pan-European fund for investors seeking income and capital growth. The Sicav-structured F&C European Growth & Income is domiciled in Luxembourg and will be managed by Paras Anand. The yield on the current portfolio is estimated to be approximately 3.7 per cent compared with a benchmark yield of 3.2 per cent while dividends will be distributed quarterly. Stock selection will be based on fundamental company analysis and it is currently overweight financials. The fund has both a euro and a sterling share class and it was launched with client seeding of some £60m.