View more on these topics

Julian Gibbs

New Star looks to have another winner with its excellent property unit trust. The fund is run by two top managers, Andrew Hicks of Capital Counties, who is responsible for direct investments in commercial property, and Robin White of Liberty International Asset Management, who manages the property share portfolio.

The fund has attracted large amounts of mainly institutional investment and has now reached £180m. Commercial property has been a fairly dull investment over the last few years but this fund has managed to give a return of 60 per cent since launch in June 1999 and yields around 4.5 per cent.

While residential property has increased hugely in value and looks to be near a peak, commercial property investments have grown steadily and over the longer term have shown returns of around 8 per cent a year. The income usually increases each year in excess of inflation. Leases on commercial property are much longer than for residential property, sometimes up to 25 years, with upwards-only rent reviews linked to inflation.

New Star only invests in commercial property with good quality tenants and the tenants have liability for repairs.

In today&#39s uncertain world, where equity markets are volatile, this conservatively managed investment is ideal for elderly and conservative investors who require an above-average income.

For those who are prepared to take a five-year view or longer, the New Star property unit trust should outperform building society deposits by a substantial margin and at the same time achieve an equally high immediate and rising income.

This trust should be part of every conservative and realistic investor&#39s portfolio.


Principal Global Investors- US High Yield Fund

Type: Ucits Aim: Growth by investing in high-yield US bonds Minimum investment: Lump sum £10,000 Investment split: 100% in high-yield US bonds Place of registration: Dublin Charges: Initial up to 5%, annual 1% Commission:Initial up to 5%, renewal subject to negotiation Tel: 020 7710 0220

L&G capital protection plus 3 closes this Friday.

Investors have only four more days to invest in Legal & General&#39s capital protection plus 3 product, which closes to new business after 5pm this Friday.The product is described as good for cautious investors wanting security in their investment and offers capital protection at maturity if the FTSE 100 index falls.It also pays out a […]

Product matters

The new Ucits III rules are likely to see a new raft of products which can take advantage of the extra investment opportunities. One such fund is the new target return fund from Credit Suisse. This is a fixed-interest fund which uses a “multi-strategy” approach to try and obtain Libor plus 2 per cent. These […]

Feeling tyred and emotional

A primed and ready MM reporter sporting pens and notebooks in every pocket found herself foiled as she tried to reach the Standard Life annual general meeting in Edinburgh on Tuesday. After reaching the airport in plenty of time to allow for every possible eventuality, the flight was then delayed for 40 minutes, which was […]

Life cover for life

Jennifer Gilchrist Proposition Lead – Design, Royal London When someone mentions whole of life plans, most people will think of a niche product that serves as an inheritance tax planning tool for high-net-worth clients. And it’s really not surprising they’ve been pigeonholed in that way because before the arrival of RDR in 2013, that’s more […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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