A LIVERPOOL property fund has devised a new approach to matching independent financial advisers (IFAs) with the burgeoning development market.

As the market starts to flicker into life again, IFAs are returning to the sector.

Spirit, based in Horton House, Exchange Flags, asks IFAs what they want from a development, rather than selling what they have got.

They then design, produce and develop a fund for that purpose, which offers a new take on fee arrangements. Spirit Senior Partner Matt Staines said: “This form of investment can reward the IFA for his work and the client pays the same or lower charges, even though the property fund is designed to suit his needs exactly.

“We discuss an asset class with an IFA, put a fund together and agree appropriate charges to the client, rather than forcing a property fund through.”

He said Spirit was currently working on two property funds – one without gearing designed for an IFA firm looking for low-risk investment, and the other is an ethical fund with social housing for the most vulnerable in society.

Another four funds could be in place by Christmas.

Spirit describes itself as a “boutique investment house” looking for IFA firms who can invest £3m-£5m a year of client funds.

It said the recent boom in SIPPs (Self-Invested Personal Pensions) means IFAs are looking for this type of investment for a portion of their clients’ pension funds.