Bringing you live news and features since 2006 

Brooks Macdonald Funds announces TER cap for ground rents fund

RELATED TOPICS​

Brooks Macdonald Funds Limited’s (BMF) Ground Rents Fund has enhanced its return to investors by capping its Total Expense Ratio (TER). As a result, the TER cap stands at just 2% for Class B shares.

 

BMF anticipates significant investment into the Fund on the back of the 2% TER cap which BMF has committed to underwrite. The size of the TER is important to investors as it reflects the costs coming out of the Fund, which can impact returns. These costs consist primarily of management fees and additional expenses such as legal fees, auditor fees and other operational expenses.

The fund’s portfolio includes commercial Ground Rents but primarily focuses on residential property. These are long-dated UK Ground Rents which enable investors to benefit from a secure and predictable income stream, which in many cases is linked to an underlying RPI index or a doubling over a fixed period of time. At 30 June 2011 the Ground Rents in the portfolio provided a yield of 5.6% with additional income in excess of 1% from the active Asset Management which Braemar Estates, the Hale-based property arm of Brooks Macdonald Group, provides. Braemar Estates manages over GBP750 million of leasehold properties.

James Agar (pictured), Development Director for Brooks Macdonald Funds and Braemar Estates, says: “Ground Rents have always been a very stable and investable asset class in which we are seeing increasing interest from both institutional and retail investors. Looking at Ground Rents in the context of the current and the predicted future financial environment, they provide investors with a very safe form of real estate investment, as well as offering a much greater return than index-linked gilts.”

Latest News

BlackRock s iShares an undisputed leader among European ETF issuers pushed further ahead in Q1 with EUR173 billion in trades..
European ETFs raised USD47 8 billion in Q1 a 15 per cent increase compared to the same period in 2023..
LSEG Lipper s March report finds that globally equity ETFs +EUR113 2 billion enjoyed the highest estimated net inflows for..
Morningstar has published a review of the European ETF market for the first quarter 2024 which finds that it gathered..

Related Articles

etf active trading
Latest Morningstar data shows actively managed ETFs share of the US ETF market rose to 8 5 per cent at...
Kristen Mierzwa, FTSE Russell
Index Investments Group IIG a division within index provider FTSE Russell has extended its range of indices through two new...
ETFs
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023 with an introductory suite of 11 ETFs seven thematic and four fundamental...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by