Architas’ real assets fund of funds to include timber – update

*adds further information and quotes about investor demand, the fund size and fund holdings.

Architas, a subsidiary of insurance company AXA, has launched The Architas Diversified Real Assets Fund and is looking for direct opportunities in timber says its chief investment officer Caspar Rock.

The open-ended fund of funds has already raised £50 million since launching in August and will invest across timber, infrastructure equity and debt, commodities, aircraft leasing and specialist property funds, according to a press release.

It is already invested into Pictet Timber Fund, which invests in listed timber processing companies.

“From initial discussions we have held in the institutional sector with pension funds, charities, insurers, discretionary fund managers, family offices and private banks, we think there is genuine demand for this new fund and the exposure to alternative assets we can offer,” said Rock in an email to Agri Investor.

The fund of funds aims to return at least 3.5 percent in an opportunity less correlated to bonds and equities than other offerings from Architas.

“Based on investor and adviser feedback, we’ve developed this fund for those who are looking for a combination of diversification and income,” said Cedric Bucher, head of business development at Architas, in a statement. “On one hand, we expect this fund to be a diversifier within portfolios. On the other hand, we also expect the demand for a range of income-producing assets to grow as a result of the changes to the pension rules announced in the UK Budget.”

The fund will be managed by Rock, with investment managers Harry Darke and Solomon Nevins.

It will charge a 0.65 percent management fee annually.