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 Acc11.7138.9895.3270.813.20Buy
Aberdeen Property Share I Acc9.3032.49107.34357.802.10Buy
Aberdeen UK Property I Acc-0.8814.5932.46488.752.40Buy
Aberdeen UK Property Feeder I Acc-0.8714.6132.481,991.692.50Buy
Aviva Inv Property Trust 2 Acc-3.317.6022.741,312.902.30Buy
BlackRock Global Property Securities Equity Tracker D Acc17.6254.5582.241,591.832.22Buy
F&C Global Real Estate Securities 3 Acc15.6957.58-33.091.40Buy
F&C Global Real Estate Securities 2 Acc15.5456.86-33.091.30Buy
F&C Property Growth & Income A Acc NAV GBP4.4231.6764.2368.50-Buy
F&C Real Estate Securities B Acc GBP11.5249.48126.1784.00-Buy
Fidelity Global Property W GBP17.1653.6276.24216.05-Buy
Fidelity Global Property W Acc18.0456.2282.23202.231.71Buy
Fidelity Global Property Y Acc17.8355.2180.94202.231.50Buy
First State Asian Property Securities B GBP Acc16.7447.2269.4211.352.86Buy
First State Global Property Securities B GBP Acc14.0051.0669.54269.842.97Buy
HC Charteris Property A Acc6.6516.3041.621.003.76Buy
HSBC Global Property C Acc8.9334.1259.23343.051.89Buy
Henderson Horizon Global Property Equities H2 Acc GBP16.70--418.04-Buy
Henderson UK Property PAIF I Acc-2.8816.1435.333,115.222.70Buy
Henderson UK Property PAIF Feeder I Acc-2.9316.0835.252,110.572.70Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
Aberdeen European Property Share I Inc11.8039.0495.1670.813.20Buy
Aberdeen UK Property I Inc-0.8914.4632.15488.752.40Buy
Aberdeen UK Property Feeder I Inc-0.8814.4832.171,991.692.50Buy
Aviva Inv Property Trust 2 Inc-3.267.5022.571,312.902.30Buy
BNY Mellon Global Property Securities I Hedged Inc GBP7.4145.2765.7612.352.78Buy
BlackRock Global Property Securities Equity Tracker D Inc17.6654.52-1,591.832.22Buy
F&C Global Real Estate Securities 3 Inc15.5156.82-33.091.20Buy
F&C Property Growth and Income I Inc5.17--237.264.90Buy
F&C Property Growth & Income E Inc NAV GBP4.9332.2366.8368.50-Buy
F&C Real Estate Securities C Dis GBP10.2347.71123.9184.00-Buy
F&C UK Property 2 Inc2.7517.3827.68322.903.30Buy
First State Asian Property Securities B GBP Inc17.1147.8070.0511.352.89Buy
First State Global Property Securities B GBP Inc13.8950.5469.19269.843.00Buy
HC Charteris Property A Inc6.5016.1640.791.004.25Buy
HSBC Global Property A Inst Inc8.0524.4047.87343.051.85Buy
HSBC Global Property C Inc8.9234.2359.62343.051.93Buy
Henderson UK Property PAIF I Inc-3.4615.2734.163,115.222.70Buy
Henderson UK Property PAIF Feeder I Inc-2.8815.96-2,110.572.70Buy
IFSL North Row Liquid Property A Inc-2.545.35-28.902.30Buy
IFSL North Row Liquid Property B Inc-2.704.47-28.902.30Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
AXA Property Trust Limited Ord NPV4.9266.8892.70-14.9568.93Buy
Adams PLC Ord EUR0.0115.009.52613.26--Buy
Aew UK REIT PLC Ord GBP0.018.30--4.8895.47Buy
Alpha Pyrenees11.15-98.18-99.54-95.832.40Buy
Alpha Real Trust Limited32.34131.9089.13--Buy
Aseana Properties Ltd18.1827.6120.93--Buy
Belvoir Lettings PLC ORD 1P-5.93-4.3567.75--Buy
British Land PLC-3.798.0764.25--Buy
Camper & Nicholsons Marina Investments-17.86-34.29-34.66--Buy
Civitas Social Housing PLC-----Buy
Custodian REIT PLC Ord 1P11.7124.06-8.62103.80Buy
Derwent London-8.6511.3280.33--Buy
Dolphin Capital Investors-4.85-79.61-62.17-73.0129.09Buy
Drum Income Plus Reit-1.81---40.49163.00Buy
Eastern European Property Ltd-11.82-28.97-39.53-55.60100.79Buy
Ediston Property Investment Company PLC Ord 1P8.43---1.98109.67Buy
Empiric Student Property PLC4.41----Buy
European Real Estate Investment Trust Limited20.6075.5945.34-27.56225.00Buy
F&C Commercial Property16.8244.4585.479.32137.40Buy
F&C UK Real Estate Investments Limited Ord 1P10.0346.60114.384.7898.30Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
HSBC FTSE EPRA/NAREIT Developed GBP-0.6916.7452.6181.17GBXProperty - InternationalBuy
SPDR Dow Jones Global Real Estate UCITS ETF GBP-0.6914.7347.47-GBPProperty - InternationalBuy
iShares Asia Property Yield UCITS ETF GBP-2.2419.9652.3072.00GBPProperty - AsiaBuy
iShares Developed Markets Property Yield UCITS ETF GBP-0.5518.2358.4781.29GBPProperty - InternationalBuy
iShares European Property Yield UCITS ETF GBP0.3117.6950.0698.15GBPProperty - EuropeBuy
iShares UK Property UCITS ETF GBP11.732.8220.6686.44GBPProperty - EuropeBuy
iShares US Property Yield UCITS ETF GBP-0.7718.9368.6791.14GBPProperty - North AmericaBuy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
KW Europe Real Estate PLC Ord NPV2.2414.78---4.49Property - Direct EuropeBuy

Disclaimer

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