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Insight shares property expertise

INSIGHT INVESTMENT

INSIGHT FOUNDATION PROPERTY TRUST

Type:
Closed-ended fund

Aim:
Income and growth by investing in UK commercial property

Minimum investment:
Lump sum £2,000

Investment split:
37% retail, 33% industrial, 30% offices

Isa link:
Yes

Pep transfers:
Yes

Place of registration:
Guernsey

Charges:
Initial up to 2.5%,
annual up to 1.3%

Commission:
Initial up to 3%

Tel: 0870 7020100

The Insight foundation property trust invests in a portfolio of 64 UK commercial properties spread over the retail, industrial and office sectors. The underlying portfolio is made up of an existing Clerical Medical property portfolio and the Lunar Partnership portfolio, both managed by Insight.

Positive Solutions IFA John Hill is disappointed that the product looks like a rebranding of the Clerical Medical portfolio. He also regards the fact that it invests in property shares rather than physical properties as a drawback. He says: “With this fund you do not actually own the bricks and mortar. As such, my clients would be reluctant to invest in it. I would also question the quality of properties available to buy at discount.”

However, Hill does think there will be a place for this fund as he believes all portfolios should contain a property fund. He likes the Insight fund&#39s low buy-in price and feels it will be a useful addition to the Isa market.

Considering the likely competitors the Insight product will face Hill says: “It is hard for me to say as most of my clients prefer to use property through bonds. The fund would have better portfolio from a client&#39s point of view if it was based in the Isle of Man.”

In conclusion Hill says: “This is worth looking at but I would only use it if made available via a multi-fund to suit my clients.”

BROKER RATINGS:
Suitability to market: Good
Investment strategy: Average
Charges: Average
Adviser remuneration: Average

Overall 6/10

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