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 Acc10.0946.0493.9780.913.20Buy
Aberdeen Property Share I Acc12.0133.3094.04347.672.00Buy
Aberdeen UK Property I Acc9.4111.7234.80575.622.40Buy
Aberdeen UK Property Feeder I Acc9.4611.7434.821,865.302.50Buy
Aviva Inv UK Property 1 Acc4.735.6224.650.00-Buy
Aviva Inv UK Property 2 Acc5.277.2527.750.00-Buy
Aviva Inv UK Property Feeder 1 Acc4.735.6124.650.00-Buy
Aviva Inv UK Property Feeder 2 Acc5.277.2527.750.00-Buy
F&C Global Real Estate Securities 3 Acc-0.2245.67-44.201.40Buy
F&C Global Real Estate Securities 2 Acc-0.3845.02-44.201.30Buy
F&C Property Growth & Income A Acc NAV GBP4.0826.1358.92257.50-Buy
F&C Real Estate Securities B Acc GBP5.2451.58121.2897.20-Buy
Fidelity Global Property W GBP2.7041.0468.34214.58-Buy
Fidelity Global Property W Acc3.1142.9273.11218.771.68Buy
Fidelity Global Property Y Acc2.9242.0271.50218.771.48Buy
First State Asian Property Securities B GBP Acc7.3735.3662.9911.302.98Buy
First State Global Property Securities B GBP Acc1.6038.2061.58266.862.81Buy
HC Charteris Property A Acc4.6511.3635.461.003.76Buy
HSBC Global Property C Acc0.7428.1554.78310.831.97Buy
Henderson Horizon Global Property Equities H2 Acc GBP2.99--361.48-Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
Aberdeen European Property Share I Inc10.3045.9693.8880.913.20Buy
Aberdeen UK Property I Inc9.3911.5434.48575.622.40Buy
Aberdeen UK Property Feeder I Inc9.4611.5634.511,865.302.50Buy
Aviva Inv UK Property 1 Inc4.965.7724.770.00-Buy
Aviva Inv UK Property 2 Inc5.677.60-0.00-Buy
Aviva Inv UK Property Feeder 1 Inc4.965.7724.770.00-Buy
Aviva Inv UK Property Feeder 2 Inc5.687.61-0.00-Buy
BNY Mellon Global Property Securities I Hedged Inc GBP-4.4122.7342.2711.723.06Buy
F&C Global Real Estate Securities 3 Inc-0.3744.97-44.201.20Buy
F&C Property Growth and Income I Inc5.0529.1162.68303.354.80Buy
F&C Property Growth & Income E Inc NAV GBP4.5626.5761.45257.50-Buy
F&C Real Estate Securities C Dis GBP5.1851.61121.4397.20-Buy
F&C UK Property 2 Inc8.0516.4530.11393.293.20Buy
First State Asian Property Securities B GBP Inc7.7836.0263.8811.303.02Buy
First State Global Property Securities B GBP Inc1.5237.7161.08266.862.84Buy
HC Charteris Property A Inc4.4811.2335.071.004.25Buy
HSBC Global Property A Inst Inc0.6419.9044.65310.831.90Buy
HSBC Global Property C Inc0.7028.3655.13310.832.00Buy
Henderson UK Property PAIF I Inc8.6513.5637.372,992.992.70Buy
Henderson UK Property PAIF Feeder I Inc8.6213.5137.312,105.602.70Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
AEW UK Long Lease REIT PLC Ord GBP0.01-----Buy
AXA Property Trust Limited Ord NPV7.8057.18133.41-9.2566.67Buy
Adams PLC Ord EUR0.0112.1512.15466.91--Buy
Aew UK REIT PLC Ord GBP0.0113.79--6.6695.98Buy
Alpha Pyrenees14.97-96.01-99.31-95.212.40Buy
Alpha Real Trust Limited45.87151.57149.15--Buy
Aseana Properties Ltd26.0421.0228.72--Buy
Belvoir Lettings PLC ORD 1P-11.89-0.5867.94--Buy
Big Yellow Group PLC7.8757.40193.89--Buy
British Land PLC-2.05-4.8135.24--Buy
Camper & Nicholsons Marina Investments20.00-26.83-38.17--Buy
Civitas Social Housing PLC-----Buy
Custodian REIT PLC Ord 1P12.8523.78-10.26104.30Buy
Derwent London5.724.5555.25--Buy
Drum Income Plus Reit-3.01--1.0694.50Buy
Eastern European Property Ltd-10.10-36.88-39.04-53.5395.76Buy
Ediston Property Investment Company PLC Ord 1P12.36--1.99110.18Buy
Empiric Student Property PLC4.1028.27-5.76105.90Buy
Energiser Investments PLC--53.33-46.15--Buy
European Real Estate Investment Trust Limited-10.2863.5191.60-9.78179.00Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
HSBC FTSE EPRA/NAREIT Developed GBP-0.021.1742.6972.02GBXProperty - InternationalBuy
SPDR Dow Jones Global Real Estate UCITS ETF GBP-1.51-0.6136.99-GBPProperty - InternationalBuy
Source Real Estate S&P US Select Sector UCITS ETF3.330.14--USDProperty - North AmericaBuy
iShares Asia Property Yield UCITS ETF GBP2.773.9639.9363.61GBPProperty - AsiaBuy
iShares Developed Markets Property Yield UCITS ETF GBP-0.280.1246.6071.55GBPProperty - InternationalBuy
iShares European Property Yield UCITS ETF GBP15.306.9260.12105.56GBPProperty - EuropeBuy
iShares MSCI Target UK Real Estate UCITS ETF GBP2.612.53--GBPProperty - EuropeBuy
iShares MSCI Target US Real Estate UCITS ETF GBP-3.560.07--GBPProperty - North AmericaBuy
iShares UK Property UCITS ETF GBP3.003.7812.5164.98GBPProperty - EuropeBuy
iShares US Property Yield UCITS ETF GBP-4.64-3.1151.9676.94GBPProperty - North AmericaBuy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
KW Europe Real Estate PLC Ord NPV23.3316.57---4.30Property - Direct EuropeBuy

Disclaimer

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