Property

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 Acc11.4439.40100.8168.943.00Buy
Aberdeen Property Share I Acc2.3523.91107.52344.742.10Buy
Aberdeen UK Property I Acc-5.1115.4726.69510.222.40Buy
Aberdeen UK Property Feeder I Acc-5.1215.4526.682,037.542.40Buy
Aviva Inv Property Trust 2 Acc-2.868.5422.031,496.202.30Buy
BlackRock Global Property Securities Equity Tracker D Acc33.0261.0697.751,433.122.04Buy
F&C Global Real Estate Securities 3 Acc30.4466.52-28.791.00Buy
F&C Global Real Estate Securities 2 Acc30.27--28.790.90Buy
F&C Real Estate Securities B Acc GBP15.1552.05134.2982.70-Buy
Fidelity Global Property W GBP29.0859.4589.45215.34-Buy
Fidelity Global Property W Acc30.7561.0195.58181.652.09Buy
Fidelity Global Property Y Acc30.4559.8994.30181.651.91Buy
First State Asian Property Securities B GBP Acc34.2140.1083.7410.922.73Buy
First State Global Property Securities B GBP Acc27.5958.4685.12286.482.63Buy
HC Charteris Property A Acc1.3813.0136.691.203.76Buy
HSBC Global Property C Acc13.5037.5963.29308.121.90Buy
Henderson Horizon Global Property Equities H2 Acc GBP32.13--400.90-Buy
Henderson UK Property PAIF I Acc-3.9916.7532.933,171.972.70Buy
Henderson UK Property PAIF Feeder I Acc-4.0016.7532.922,211.342.70Buy
IFSL North Row Liquid Property A Acc-0.93--27.412.60Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
Aberdeen European Property Share I Inc11.4239.42100.4068.943.00Buy
Aberdeen UK Property I Inc-5.5614.7325.76510.222.40Buy
Aberdeen UK Property Feeder I Inc-5.1415.2426.322,037.542.40Buy
Aviva Inv Property Trust 2 Inc-2.808.3921.861,496.202.30Buy
BlackRock Global Property Securities Equity Tracker D Inc33.0761.19-1,433.122.04Buy
F&C Global Real Estate Securities 3 Inc30.1565.63-28.790.90Buy
F&C Property Growth & Income E Inc NAV GBP4.9433.5966.12194.00-Buy
F&C Real Estate Securities C Dis GBP14.9151.93134.3582.70-Buy
F&C UK Property 2 Inc2.5418.5427.20321.553.30Buy
First State Asian Property Securities B GBP Inc34.5840.5284.2510.922.73Buy
First State Global Property Securities B GBP Inc27.4357.8684.77286.482.63Buy
HC Charteris Property A Inc1.2412.9435.901.204.25Buy
HSBC Global Property A Inst Inc13.3928.5552.97308.121.84Buy
HSBC Global Property C Inc13.5437.8063.69308.121.93Buy
Henderson UK Property PAIF I Inc-3.6117.1033.123,171.972.70Buy
Henderson UK Property PAIF Feeder I Inc-3.9716.65-2,211.342.70Buy
IFSL North Row Liquid Property A Inc-0.81--27.412.60Buy
IFSL North Row Liquid Property B Inc-1.03--27.412.60Buy
JPM Global Property Securities C Inc8.4623.0665.7553.021.96Buy
Kames Property Income B Gr Inc4.23--433.005.55Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
AXA Property Trust Limited Ord NPV17.2677.0988.72-13.1771.40Buy
Adams PLC Ord EUR0.01-10.00-18.18549.91--Buy
Aew UK REIT PLC Ord GBP0.01-0.63---0.8995.47Buy
Alpha Pyrenees-25.00-98.85-99.69-96.882.40Buy
Alpha Real Trust Limited27.31106.1456.01--Buy
Aseana Properties Ltd15.8618.1844.97--Buy
Belvoir Lettings PLC ORD 1P17.48-26.20---Buy
British Land PLC-10.164.4158.37--Buy
Camper & Nicholsons Marina Investments-3.57-25.00-46.43--Buy
Civitas Social Housing PLC-----Buy
Custodian REIT PLC Ord 1P8.24--7.67101.70Buy
Derwent London-20.385.4674.27--Buy
Dolphin Capital Investors-36.84-76.24-59.55-69.0629.09Buy
Drum Income Plus Reit2.10--8.7493.80Buy
Duet Real Estate Finance Limited Ord29.8673.7582.614.776.92Buy
Eastern European Property Ltd-2.46-26.67-30.04-50.89100.79Buy
Ediston Property Investment Company PLC Ord 1P9.44---1.00107.07Buy
Empiric Student Property PLC3.14--3.60104.73Buy
European Real Estate Investment Trust Limited14.9560.5547.63-27.11225.00Buy
F&C Commercial Property8.2126.1570.503.18132.00Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
HSBC FTSE EPRA/NAREIT Developed GBP3.7633.9159.4697.14GBXProperty - InternationalBuy
SPDR Dow Jones Global Real Estate UCITS ETF GBP2.9931.6457.36-GBPProperty - InternationalBuy
iShares Asia Property Yield UCITS ETF GBP3.7641.0055.5675.30GBPProperty - AsiaBuy
iShares Developed Markets Property Yield UCITS ETF GBP1.9932.5567.0792.32GBPProperty - InternationalBuy
iShares European Property Yield UCITS ETF GBP0.5927.2252.08102.85GBPProperty - EuropeBuy
iShares UK Property UCITS ETF GBP3.36-3.5316.3087.74GBPProperty - EuropeBuy
iShares US Property Yield UCITS ETF GBP1.5332.1183.28107.06GBPProperty - North AmericaBuy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
KW Europe Real Estate PLC Ord NPV-11.69----5.08Property - Direct EuropeBuy

Disclaimer

Interactive Investor does not endorse any particular product. If you are unsure about whether an investment is suitable for you please seek advice from a financial advisor.