The Global Asset Management Company, BMO, has launched their US Real Estate Equity Long/Short Fund, or REELS Fund. This fund will act as a UCIT fund that is market neutral and concentrated on the US real estate securities.

The BMO US REELS Fund will focus on generating positive returns for their investors. These returns occur as capital growth. The REELS Fund aims to deliver a positive return for their clients in all market conditions over the course of three years. The Fund achieves these results by targeting mid-single digit annualized returns.

The new US Fund will be managed by the Global Asset Management at BMO and their Property Equities team. Portfolios are constructed and implemented via a collegiate approach and the strategic decisions and allocations of risk are made by Alban Lhonneur and Daniel Winterbottom. This process is overseen by the Head of Property Equities, Marcus Phayre-Mudge. This Property Equities team has a good trach record for strategies of this nature, shown by the European focused F&C Real Estate Equity Long/Short Fund. The F&C REELS Fund was launched in 2012 and since then the Fund has returned 15.3%.

The BMO US REELS Fund will make use of insights that have been gained by company analysis and will then be applied in a market neutral format and then deployed. The company has had success with their other funds therefore it is expected that the US REELS Fund will perform just as well. BMO aim to use the differentials between individual companies. As part of the US Fund, this will be done with pair trades inside property sub-sectors while still maintaining a sub-sector neutral stance.

The new BMO Fund will be available for institutional and advised retail investors. The US REELS Fund has been registered for sale in the UK, Belgium, Finland, France, Ireland, Italy, Luxembourg, Netherlands, Spain and Sweden.