Relaunched property fund set for growth

Real Estate Capital Partners (RECP) has relaunched the property securities fund formerly known as the Trafalgar Enhanced Income Fund, with a goal to grow the offering from its current funds under management (FUM) level of $50 million to $200 million by the end of 2007.

The fund will now be known as the Real Estate Capital Partners Enhanced Income Fund and aims to provide investors with tax-effective income returns along with consistent capital growth.

RECP chief executive Andrew Saunders said his company was perfectly placed to take over managing the fund from Trafalgar Managed Investments.

“Trafalgar are doing a strategic review of their business at the moment and this fund is not core to their business. As a non-core asset they decided to retire as the manager, and the fund actually is very core to our business,” he said.

RECP were eager for the relaunch to be as seamless as possible, and to this end have been able to continue the involvement of the fund’s key management personnel.

Saunders explained: “When we were appointed as the responsible entity we did ensure that we retained the services of both Steve Hiscock and Paul Nielson as the investment managers for the fund. So the fund basically stays as is, but what we’re doing is basically putting it in the middle of our business as a core fund with a view to growing it quite significantly.”

The broad based properties securities fund has to date been distributed to the retail market via financial planners and major platforms.

RECP are now looking to increase the fund’s reach by having it included as a standalone investment option, or as part of the default strategy of superannuation funds and master trusts.