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 Acc12.0825.3672.86109.033.00Buy
Aberdeen Property Share I Acc11.2220.0772.85402.832.10Buy
Aberdeen UK Property I Acc6.617.8738.17513.132.60Buy
Aberdeen UK Property Feeder I Acc6.597.8638.161,834.112.60Buy
Aviva Inv UK Property 2 Acc8.335.0933.04970.002.20Buy
Aviva Inv UK Property Feeder Acc 28.325.0833.02970.001.50Buy
Commercial Freehold A Gr Acc5.0319.15-132.64-Buy
Commercial Freehold B Net Acc4.1016.24-132.64-Buy
Commercial Freehold ISA Acc---132.64-Buy
F&C Global Real Estate Securities 3 Acc-6.3415.39-38.411.20Buy
F&C Global Real Estate Securities 2 Acc-6.4014.99-38.411.10Buy
F&C Property Growth & Income A Acc NAV GBP7.4012.6157.92376.40-Buy
F&C Real Estate Securities B Acc GBP14.4534.3298.98195.90-Buy
Fidelity Global Property W GBP-4.7911.1927.47197.00-Buy
Fidelity Global Property W Acc-5.1013.4632.08205.732.12Buy
Fidelity Global Property Y Acc-5.3312.6830.61205.731.89Buy
First State Asian Property Securities B GBP Acc0.7514.8615.7810.643.49Buy
First State Global Property Securities B GBP Acc-4.2110.1830.53246.613.18Buy
Freehold Income Authorised B Net Acc8.1527.8347.26306.09-Buy
Freehold Income Authorised E Gr Acc8.6630.1251.67306.09-Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
Aberdeen European Property Share I Inc12.0925.3572.81109.033.00Buy
Aberdeen UK Property I Inc6.657.7837.87513.132.60Buy
Aberdeen UK Property Feeder I Inc6.597.7537.841,834.112.70Buy
Aviva Inv UK Property 2 Inc8.755.5133.37970.002.20Buy
Aviva Inv UK Property Feeder Inc 28.735.4933.340.001.50Buy
Commercial Freehold C Gr Inc2.4115.77-132.64-Buy
Commercial Freehold D Net Inc2.0113.58-132.64-Buy
Commercial Freehold ISA Inc---132.64-Buy
F&C Global Real Estate Securities 3 Inc-6.3714.90-38.411.10Buy
F&C Property Growth and Income I Inc8.7416.0063.13402.904.70Buy
F&C Property Growth & Income E Inc NAV GBP7.8114.3460.17376.40-Buy
F&C Real Estate Securities C Dis GBP14.5334.3398.18195.90-Buy
F&C UK Property 2 Inc6.2215.6734.42504.973.00Buy
F&C UK Property Feeder 2 Inc6.2015.8234.60392.852.80Buy
First State Asian Property Securities B GBP Inc0.8615.4216.3310.643.55Buy
First State Global Property Securities B GBP Inc-4.259.8829.98246.613.22Buy
Freehold Income Authorised D Net Inc8.1227.7147.11306.09-Buy
Freehold Income Authorised H Net Inc7.8426.6545.11306.09-Buy
Freehold Income Authorised ISA Inc8.9031.0653.65306.09-Buy
Freehold Income Authorised C Gr Inc8.9031.0353.60306.09-Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
AEW UK Long Lease REIT PLC Ord GBP0.01---3.2892.27Buy
AXA Property Trust Limited Ord NPV-28.520.1023.31-35.4763.69Buy
Adams PLC Ord EUR0.01-37.85-50.7120.9774.420.03Buy
Aew UK REIT PLC Ord GBP0.012.86---1.5597.21Buy
Alpha Pyrenees-25.00-95.53-98.57-96.882.40Buy
Alpha Real Trust Limited15.89109.88188.76-23.19167.30Buy
Aseana Properties Ltd3.3711.9836.08--Buy
Belvoir Lettings PLC ORD 1P3.872.04-8.96--Buy
Big Yellow Group PLC24.6348.46167.35--Buy
British Land PLC6.04-10.6835.76--Buy
Civitas Social Housing PLC-4.10---8.69112.80Buy
Civitas Social Housing PLC C Shs 1P----0.4198.40Buy
Custodian REIT PLC Ord 1P10.7229.06-10.53107.30Buy
Derwent London9.01-5.6144.90--Buy
Dolphin Capital Investors-4.46-68.09-76.65-64.4521.10Buy
Drum Income Plus Reit4.37--0.1095.40Buy
Ediston Property Investment Company PLC Ord 1P11.8918.86--0.43112.48Buy
Empiric Student Property PLC-18.79-5.88--19.52104.37Buy
Energiser Investments PLC-57.89-66.67-57.89-31.511.46Buy
F&C Commercial Property1.1617.1068.412.27141.20Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
HSBC FTSE EPRA/NAREIT Developed GBP-7.04-7.3912.6123.12GBXProperty - InternationalBuy
SPDR Dow Jones Global Real Estate UCITS ETF GBP-7.52-9.507.3016.67GBPProperty - InternationalBuy
Source Real Estate S&P US Select Sector UCITS ETF-5.32-2.95--USDProperty - North AmericaBuy
iShares Asia Property Yield UCITS ETF GBP-2.44-2.3120.4721.63GBPProperty - AsiaBuy
iShares Developed Markets Property Yield UCITS ETF GBP-7.85-8.6014.4929.55GBPProperty - InternationalBuy
iShares European Property Yield UCITS ETF GBP2.0112.3540.7172.19GBPProperty - EuropeBuy
iShares MSCI Target UK Real Estate UCITS ETF GBP3.981.981.47-GBPProperty - EuropeBuy
iShares MSCI Target US Real Estate UCITS ETF GBP-11.02-13.3010.12-GBPProperty - North AmericaBuy
iShares UK Property UCITS ETF GBP7.094.000.4950.79GBPProperty - EuropeBuy
iShares US Property Yield UCITS ETF GBP-13.79-16.657.9127.30GBPProperty - North AmericaBuy

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.