View more on these topics

Buckles adds to Snowdonia range

Welsh IFA firm Buckles Investment Services has added the Snowdonia property fund to its Oeic fund of funds range.

The fund aims for income, with an initial target yield of 4.5 per cent, and capital growth by investing in real estate investment trusts, offshore property companies quoted on the London Stock Exchange and other commercial property shares in Europe including the UK. It will also have the ability to invest up to 20 per cent outside Europe, which will enable it to take advantage of opportunities particularly in the Hong Kong Reits market.

The growing popularity of Reits in Europe is the driving force behind the introduction of this fund. Unlike other means of investing indirectly in property, there is no double taxation on income as Reits do not pay corporation tax. But they must distribute 90 per cent of their dividends and Buckles believes this will be good for investors looking for income.

Alex Ross of Premier Portfolio Managers will manage the fund for Buckles. He joined Premier in June from Aberdeen, where he spent seven years running the Aberdeen property share unit trust. He has also worked for Barclays de Zoete Wedd and Ivory & Sime.

Ross will manage the Snowdonia fund on a bottom-up basis and will hedge investments back into sterling to avoid currency risk. He believes the introduction of Reits in the UK and in Germany will provide good opportunities for investment.

He points out that over 73 per cent of German companies own their own premises compared with about 25 per cent of companies in the UK and the US. Consequently he believes many German companies will be offloading their properties onto Reits through sale and lease back arrangements, providing opportunities for this fund.

Investing in property shares has a number of advantages over investing directly, including greater liquidity, which will allow Ross to get quickly in and out of pockets of growth within property sub-sectors. It also enables him to benefit from consolidation within the quoted property company sector.

However, other companies including bigger names such as Skandia and Fidelity International are also seeing the potential of Reits and are expected to bring out products which will compete with Buckles. However, having Ross of Premier at the helm should benefit the Snowdonia fund.

Recommended

FSA fines HSBC 100,000 for transaction reporting breaches

The FSA fines HSBC 100,000 for transaction reporting breaches for failing to take reasonable steps to ensure the accuracy of transaction reports.The FSA had made a request for trading information from HSBC Stockbroker Services relating to the period December 2002 until August 2005. The FSA found that transaction reports made through HSS had been inaccurately […]

Aifa fears over unregulated advice by employers

Aifa is warning that key Treasury proposals allowing emp-loyers to provide unregulated financial advice to their staff could lead to misselling. The pre-Budget report issued on Monday includes plans to broaden the exemption of employers providing advice to their staff on work-related fin- ancial matters. But Aifa deputy director general Fay Goddard says the proposal, […]

Unique offering from NDF

NDF Administration has introduced the NDF income plan, a capital-protected bond linked to the performance of the Dow Jones Eurostoxx 50 index.

When is £1m not £1m?

Neil Jones is technical support manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. The residential nil-rate band (RNRB) was first announced in […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com