View more on these topics

Julian Gibbs

Since 2003, when New Star took over the running of its property trust, it has grown from around 135m to well over 480m, despite not being eligible for Isas.

Roger Dossett and Ken Malone are the highly talented leaders of New Star’s specialist in-house property team. Both were formerly at Estates & General, where Dossett was managing director.

The property share portfolio is managed by Stephen Whittaker, the first-class manager of the New Star UK growth fund.

The property portfolio accounts for around 60 per cent of the fund, half or which is in offices, one-third in retail and the balance in industrial and leisure. The property share portfolio accounts for another 25 per cent, with the biggest holdings being Land Securities, British Land, Hammersons and Liberty International.

The remaining 15 per cent of the fund is invested in fixed-interest bonds, mainly issued by property companies.

The key reasons for investing in property at the moment are that the yield from commercial property is rather higher than on most equities and, unlike the housing market which is now too high, commercial property values are at reasonable levels.

Most forecasters believe that commer- cial property is undervalued. Also, investor demand, both from UK institutions and from overseas, is healthy.

There are plenty of buyers looking for investments and there are only a limited number of sellers. Over the last two years, since New Star took over the fund, it has risen by 28 per cent, which is an outstanding result in relation to its type of portfolio.

This fund can be recommended to all risk-averse investors and as part of every- one’s portfolio.

Recommended

Fed aims to cool inflation

Schroders chief economist Keith Wade analyses the implications of the latest rate rise in the US and looks at investment opportunities around the globe.

Robert Reid

Last week, I reverted to my childhood by buying a spanking new drum kit. For stress release, the drums have no equal and, with the potential bonus of forming a rhythm section with Lucian Camp, this was a purchase with no regrets. I had forgotten how good it felt to play the drums. I wish the clock could be turned back in this sector, too.

Looking back at 2015

By Fiona Tait, Pensions Specialist 2015 was quite a year for pensions. Change, more change, and proposed changes to the changes. The Spring Budget – pre-election plans With everything that has happened since, it is hard to remember what happened in March. Following on from the bombshell of the 2014 Budget, the Chancellor confined himself […]

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