Introduction to Property

There are two main approaches to property investment. The first is to invest in property companies listed on the stock exchange, building a UK or globally-focused portfolio. The second is to invest in bricks and mortar, mainly via funds that own and manage commercial properties directly.

Each approach has different investment characteristics. For example, funds that invest in property companies will move more in line with conventional equity markets over the short-term. Equally, they may be more capital-growth focused, rather than yield-focused.

Bricks and mortar funds will offer greater diversification from conventional equity markets, but are also likely to be more focused on delivering a sustainable yield. However they are also less ‘liquid’ – managers of open-ended funds may not find it as easy to buy and sell the underlying holdings to meet investor redemptions. However this is not an issue that effects closed-end investment companies.

Property funds may specialise in high end 'prime' property, which usually proves more defensive in an economic downturn. Alternatively, they may focus on secondary property, which will be more vulnerable in a downturn, but may outstrip prime property in a buoyant market.

During adverse market conditions, some property funds can suspend withdrawals for periods of time (typically 6 months).

The tax treatment of investments is subject to tax law and HMRC practice which are subject to change. 

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
Aberdeen European Property Share I Inc2.9636.5275.6472.312.80Buy
Aberdeen UK Property I Inc-6.9220.4924.53527.662.40Buy
Aberdeen UK Property Feeder I Inc-6.9520.4524.492,094.832.40Buy
Aviva Inv Asia Pacific Property I GBP44.2338.6326.89160.203.31Buy
BNY Mellon Global Property Securities J Hedged Inc GBP2.4437.1080.4112.01-Buy
BlackRock Global Property Securities Equity Tracker D Inc28.1450.95-1,278.362.07Buy
F&C Global Real Estate Securities 3 Inc27.51--28.050.90Buy
F&C Property Growth & Income E Inc NAV GBP0.6534.0055.47204.70-Buy
F&C Real Estate Securities C Dis GBP10.2356.56114.44104.40-Buy
F&C UK Property 2 Inc2.0520.0427.22299.473.40Buy
FP Charteris Property A Inc-9.949.8029.441.204.25Buy
Fidelity Global Property A GBP21.1244.1981.13243.86-Buy
First State Asian Property Securities B GBP Inc29.9833.8685.2611.032.70Buy
First State Global Property Securities B GBP Inc20.4249.5290.54284.512.56Buy
Franklin Global Real Estate W QDis USD-0.6811.0640.80332.20-Buy
HSBC Open Global Property A Inst Inc13.4629.0353.09272.911.56Buy
HSBC Open Global Property C Inc13.5138.2763.60272.911.63Buy
Henderson UK Property PAIF I Inc-3.7917.7330.983,374.453.10Buy
Henderson UK Property PAIF Feeder I Inc-3.8217.69-2,237.803.10Buy
IFSL North Row Liquid Property A Inc-2.44--32.352.60Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
AXA Property Trust Limited Ord NPV32.9964.3767.02-5.3768.82Buy
Adams PLC Ord EUR0.01-48.39-23.81978.37--Buy
Aew UK REIT PLC Ord GBP0.013.56--4.5594.57Buy
Alpha Pyrenees-90.00-97.33-99.609,870.58-Buy
Alpha Real Trust Limited30.96109.1037.54-141.70Buy
Aseana Properties Ltd-4.4315.4829.77--Buy
Belvoir Lettings PLC ORD 1P20.53-2.04---Buy
British Land PLC-30.722.1335.82-891.00Buy
Camper & Nicholsons Marina Investments-3.57-27.03-54.24-15.90Buy
Custodian REIT PLC Ord 1P4.78--3.24101.70Buy
Derwent London-36.33-2.8253.46-3,598.00Buy
Dolphin Capital Investors-67.86-86.45-82.42-80.2329.09Buy
Drum Income Plus Reit2.53--10.8793.80Buy
Duet Real Estate Finance Limited Ord552.661,919.622,183.31489.641.15Buy
Eastern European Property Ltd2.54-36.08-29.37-49.90100.79Buy
Ediston Property Investment Company PLC Ord 1P4.55--0.87107.07Buy
Empiric Student Property PLC7.91--8.63105.40Buy
European Real Estate Investment Trust Limited52.31109.8030.26-25.11225.00Buy
F&C Commercial Property-8.7524.5556.85-134.10Buy
F&C UK Real Estate Investments Limited Ord 1P0.3248.6980.03-1.7199.20Buy


Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
DB X-Trackers FTSE EPRA/NAREIT Global Real Estate UCITS ETF 1C GBP16.6226.3441.9882.92GBXProperty - InternationalBuy
HSBC FTSE EPRA/NAREIT Developed GBP16.7226.7647.9593.48GBXProperty - InternationalBuy
SPDR Dow Jones Global Real Estate UCITS ETF GBP14.5222.6041.34-GBPProperty - InternationalBuy
iShares Asia Property Yield UCITS ETF GBP23.6540.7948.0288.13GBPProperty - AsiaBuy
iShares Developed Markets Property Yield UCITS ETF GBP18.9330.5856.8996.83GBPProperty - InternationalBuy
iShares European Property Yield UCITS ETF GBP17.2427.2652.0882.16GBPProperty - EuropeBuy
iShares UK Property UCITS ETF GBP-8.77-17.8215.7869.91GBPProperty - EuropeBuy
iShares US Property Yield UCITS ETF GBP19.7331.4368.66113.19GBPProperty - North AmericaBuy


Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
KW Europe Real Estate PLC Ord NPV-10.14--1,201.90-15.304.54Property - Direct EuropeBuy


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