Aifa has published an introduction to real estate investment trusts for advisers which outlines the products including advantages and disadvantages.
Reits were launched on January 1 2007 and Reita is sponsoring the guide which is available free of charge for Aifa members on its website.
The guide warns advisers that the results of investing in Reits will vary according to the underlying investments that each Reit contains, the quality of management and the level of costs and expenses.
Aifa director general Chris Cummings says: “The introduction of Reits in the UK is already having a considerable impact on the property market which has proved a popular and profitable investment in recent years. Reits provide investors with another vehicle for investing in both commercial and residential property of many different types.
“It is therefore important that IFAs should understand these new vehicles and their implications for clients and for their own businesses. This is why we have set out clearly – for our members – what we see as the issues surrounding Reits that they need to be aware of.”
Reita programme coordinator Dave Butler says: “The listed property investment market has huge long-term growth potential and Reits could be a trigger for that growth. However the need for advisers to have the right information to understand the risks, issues and opportunities of this asset class cannot be underestimated. Information and education for advisers and, through them, investors, are key to the rapid, successful and safe growth of this market.”