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 Acc9.9343.9888.3380.683.20Buy
Aberdeen Property Share I Acc10.8031.5689.48344.552.00Buy
Aberdeen UK Property I Acc6.9311.3835.33569.862.40Buy
Aberdeen UK Property Feeder I Acc6.9311.3735.311,856.772.50Buy
Aviva Inv UK Property 2 Acc6.747.0928.480.00-Buy
Aviva Inv UK Property Feeder 2 Acc6.747.0928.480.00-Buy
F&C Global Real Estate Securities 3 Acc-1.1745.84-43.551.40Buy
F&C Global Real Estate Securities 2 Acc-1.3145.22-43.551.30Buy
F&C Property Growth & Income A Acc NAV GBP5.9426.9460.30270.20-Buy
F&C Real Estate Securities B Acc GBP6.8750.89115.30111.60-Buy
Fidelity Global Property W GBP1.0539.2160.54212.81-Buy
Fidelity Global Property W Acc2.3341.8966.26220.551.55Buy
Fidelity Global Property Y Acc2.0840.8964.47220.551.33Buy
First State Asian Property Securities B GBP Acc2.4335.0752.7110.833.12Buy
First State Global Property Securities B GBP Acc-0.8135.7856.33253.712.92Buy
HC Charteris Property A Acc2.7610.4030.011.003.76Buy
HSBC Global Property C Acc1.6827.6552.94306.972.00Buy
Henderson Horizon Global Property Equities H2 Acc GBP1.02--361.48-Buy
Henderson UK Property PAIF I Acc8.9013.6538.222,992.992.80Buy
Henderson UK Property PAIF Feeder I Acc8.8813.6238.192,113.092.90Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
Aberdeen European Property Share I Inc10.1444.0288.2280.683.20Buy
Aberdeen UK Property I Inc6.9111.2034.95569.862.40Buy
Aberdeen UK Property Feeder I Inc6.9311.1934.951,856.772.50Buy
Aviva Inv UK Property 2 Inc7.147.44-0.00-Buy
Aviva Inv UK Property Feeder 2 Inc7.157.45-0.00-Buy
BNY Mellon Global Property Securities I Hedged Inc GBP-4.0622.5042.1811.723.11Buy
F&C Global Real Estate Securities 3 Inc-1.3345.15-43.551.20Buy
F&C Property Growth and Income I Inc6.5829.6563.73316.704.80Buy
F&C Property Growth & Income E Inc NAV GBP6.4327.4162.79270.20-Buy
F&C Real Estate Securities C Dis GBP6.7950.84115.46111.60-Buy
F&C UK Property 2 Inc6.1216.1530.39413.193.20Buy
First State Asian Property Securities B GBP Inc2.7735.6853.5110.833.16Buy
First State Global Property Securities B GBP Inc-0.8835.2955.81253.712.96Buy
HC Charteris Property A Inc2.6110.2829.641.004.25Buy
HSBC Global Property A Inst Inc1.5519.3442.71306.971.93Buy
HSBC Global Property C Inc1.7427.8753.22306.972.02Buy
Henderson UK Property PAIF I Inc8.9813.6738.012,992.992.80Buy
Henderson UK Property PAIF Feeder I Inc8.9713.6237.952,113.092.90Buy
JPM Global Property Securities C Inc2.2018.3644.4232.561.71Buy
Kames Property Income B Gr Inc13.8721.41-527.005.19Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
AEW UK Long Lease REIT PLC Ord GBP0.01-----Buy
AXA Property Trust Limited Ord NPV6.7155.84128.01-11.8667.65Buy
Adams PLC Ord EUR0.0112.15-17.13451.45--Buy
Aew UK REIT PLC Ord GBP0.0113.30--4.7996.86Buy
Alpha Pyrenees-23.33-95.40-99.41-95.212.40Buy
Alpha Real Trust Limited46.74167.21165.65--Buy
Aseana Properties Ltd15.7618.3325.29--Buy
Belvoir Lettings PLC ORD 1P-23.174.9547.30--Buy
Big Yellow Group PLC5.2250.48171.27--Buy
British Land PLC0.69-6.7932.43--Buy
Camper & Nicholsons Marina Investments20.00-26.83-36.92--Buy
Civitas Social Housing PLC-----Buy
Custodian REIT PLC Ord 1P15.5725.52-9.78104.30Buy
Derwent London11.142.3849.78--Buy
Drum Income Plus Reit-3.01--1.0694.50Buy
Eastern European Property Ltd-10.10-33.08-48.26-53.5395.76Buy
Ediston Property Investment Company PLC Ord 1P17.95--3.69110.18Buy
Empiric Student Property PLC-8.2716.53--4.15105.90Buy
Energiser Investments PLC60.00-46.67-48.39--Buy
European Real Estate Investment Trust Limited11.4491.57124.409.83173.00Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
HSBC FTSE EPRA/NAREIT Developed GBP-2.91-0.2941.8864.18GBXProperty - InternationalBuy
SPDR Dow Jones Global Real Estate UCITS ETF GBP-4.64-2.2134.88-GBPProperty - InternationalBuy
Source Real Estate S&P US Select Sector UCITS ETF7.025.36--USDProperty - North AmericaBuy
iShares Asia Property Yield UCITS ETF GBP-2.331.2240.2655.32GBPProperty - AsiaBuy
iShares Developed Markets Property Yield UCITS ETF GBP-2.43-0.3046.6266.94GBPProperty - InternationalBuy
iShares European Property Yield UCITS ETF GBP9.817.8559.7696.25GBPProperty - EuropeBuy
iShares MSCI Target UK Real Estate UCITS ETF GBP1.683.68--GBPProperty - EuropeBuy
iShares MSCI Target US Real Estate UCITS ETF GBP-5.94-2.06--GBPProperty - North AmericaBuy
iShares UK Property UCITS ETF GBP1.824.9711.2861.83GBPProperty - EuropeBuy
iShares US Property Yield UCITS ETF GBP-5.17-3.1652.2574.29GBPProperty - North AmericaBuy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
KW Europe Real Estate PLC Ord NPV24.0110.86---4.40Property - 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.