View more on these topics

Isis in vogue

ISIS ASSET MANAGEMENT

ISIS PROPERTY TRIST 2

Type:
Closed-ended investment company

Aim:
Income and growth by investing in UK office, retail and industrial properties

Minimum investment:
Subject to negotiation with stockbroker

Investment split:
43% retail, 34% industrial, 23% offices

Place of registration:
Guernsey

Yield:
6.75%

Charges:
Annual 0.85%

Commission:
Subject to negotiation

Tel: 0845 850 1515

The Isis Property Trust 2 is a Guernsey-based closed-ended fund which aims for income and growth by investing in a portfolio of 30 freehold and leasehold UK commercial properties.

Capital Trust Financial Management partner Bruce MacFarlane thinks the product is excellent and hard to fault. He says: “Property products are very much in vogue with new offering coming to the market on a regular basis. The Isis property trust offers an excellent means for clients to get exposure to the commercial property market.”

In MacFarlane&#39s view, the company offers an attractive alternative to traditional property exposure via the likes of insurance bond funds. He says: “Due to its ability to leverage, the Isis property trust should provide for greater returns &#45 albeit with a greater degree of volatility.”

MacFarlane likes the trust&#39s Isa eligibility as this allows the naturally high yield to be paid to investors exempt from income tax. He adds that shares held outside an Isa wrapper benefit from the individual&#39s annual capital gains tax exemption and taper relief over the long term

He continues: “The shares also offer a very cost-effective means of entering the property market when one considers that stamp duty alone on commercial property is 4 per cent. The company has a good spread of properties with a favoured weighting towards retail but with good exposure to office and industrial. Average lease lengths are at the longer end with strong covenant security and negligible voids.”

MacFarlane feels it would be prudent for investors to be aware that property investment carries risk and that commercial valuations are trading at record multiples. In his view the growth in this asset class over he last five years is unlikely to be maintainable going forwards.

Looking at possible competitors MacFarlane suggests similar trusts such as Scottish Widows UK balanced property trust and structured funds such as Close Brothers PIP.

BROKER RATINGS:

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

Overall 8/10

Recommended

Verity&#39s view

The recent dissolving of the appeals tribunal in the case of Paul “The Plumber” Davidson is probably the most bizarre and colourful story to shed light on the workings of the FSA since its inception. Davidson&#39s solicitors, Saunders & Co (represented in court by Bitu Bhalla, QC) reckon it is more than bizarre and colourful. […]

Insight Investment – Insightt 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: 0845 850 6050

Friends places shares worth 10 per cent to fund takeover

Friends Provident has placed ordinary shares worth 10 per cent of its existing share capital to fund its takeover of fund manager F&C, formerly Foreign & Colonial. In a stock exchange announcement this morning, the life office has placed 172,405,671 shares. It follows its announcement also today that Isis, the fund manager it owns 67 […]

Irish link aims to unlock pensions

The Inland Revenue will be unable to close down a scheme that unlocks pensions by transferring funds to Ireland for at least a year because it would require primary legislation. The scheme relies on Revenue form PS122, which def-ines a tax treaty between the UK and the Republic of Ireland. Similar tax treaties exist bet-ween […]

Japan Economic Insight

James Dowey, Chief Economist, and Paul Caruana-Galizia, Economist

The conventional wisdom is that following a roughly 50 per cent rise in the stock market in 2013 in Yen terms, the Japan trade is over and done*. So the story goes, those big gains were due to a one-off boost from quantitative easing (QE) and a depreciation of the Yen — policies that one should think of as a palliative to Japan’s economic weakness, but not a cure. Rather the cure, and by implication the necessary condition for a longer-term investment case, is deep structural reforms — a painstaking re-weaving of Japan’s economic and social fabric, no less. The story continues: this is a much tougher test than launching a blast of QE, and one that prime minister Shinzo Abe, although well intentioned and well supported by the public thus far, is likely to fail. Stick a fork in Japan, it’s done…continue reading

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