BMO Global Asset Management has launched the BMO US Real Estate Equity Long/Short (US REELS) Fund, a market neutral UCITs fund that focuses on US real estate securities.
The BMO US REELS Fund targets mid-single digit annualised returns over a three year period.
The fund will be managed by BMO Global AM’s property equities team which looks collectively at the portfolio construction and implementation process.
Strategic decisions on risk allocation are carried out by Alban Lhonneur and Daniel Winterbottom, with oversight from Marcus Phayre-Mudge, head of Property Equities.
Alban Lhonneur, fund manager on BMO Global Asset Management’s property equities team, said: “Our new BMO US REELS Fund will utilise insights gained through fundamental company analysis and apply them within a market neutral format and deployed through our robust and proven dynamic model (…) In this fund, we do so through pair trades within property sub-sectors, for example offices, malls and industrials, and by strictly adhering to a sub-sector neutral stance.”
Marcus Phayre-Mudge, head of BMO Global Asset Management’s Property Equities team, commented: “Real estate securities provide us with a broad, deep and comparable opportunity set within which to identify sources of return.
“The successful application of these insights within a long/short framework led to strong client demand, inflows and subsequently, the soft-closure of our European focused F&C Real Estate Equity Long/Short Fund. Our new BMO US REELS Fund extends our range and brings new capacity to our clients.”
The Dublin-domiciled fund will be available to institutional and advised retail investors. BMO US REELS is registered for sale in the UK, Belgium, Finland, France, Ireland, Italy, Luxembourg, Netherlands, Spain and Sweden.
BMO Financial Group’s assets under management totalled CDN$692bn (€480.4bn) as of 31 January 2017.