BMO Asset Management has one of the UK’s largest property teams but the BMO UK Property fund is a recent addition to their offering. The fund was launched in 2010 (as F&C UK Property) with a view to primarily focus on prime properties outside London with secure income streams and long leases. As a result, the fund appears as one of the most defensive within its peers group. There is a strong investment process and large supporting team which manage all aspects of the asset class from asset allocation to property management.
We like this fund as the Lead Portfolio manager has a strong track record in managing UK commercial property assets and the fund is well positioned to take advantage of the high level of income generated by the asset class. As an aside they are one of the very few property funds that actively manage the properties the properties they own.