Savills Investment Management (Savills IM) has launched Savills IM Real Estate Securities Income fund. It invests in selected Reits (Real Estate Investment Trusts) worldwide and aims for a pay-out of more than 5% annually.
Only high-quality stocks with a low leverage ratio, a high interest coverage ratio and a high dividend yield are eligible for the selection. The Reit fund starts with a 50% European allocation and one quarter investment each in North America and Asia Pacific. He is currently invested in about 25 countries through his Reit shares.
Savills IM uses the Real Estate Securities Income fund to target institutional investors who are seeking regular returns with low volatility and reasonable returns. This makes the Reit fund an attractive alternative to dividend funds.
The fund receives a quarterly transparency report with transparency confirmation issued by Rödl & Partner GmbH. This gives the investor a high degree of insight into the investment management of the product, which in principle results in more security in dealing with the investment.