There have been a number of new property fund launches announced over the summer and two big names entering the arena are Skandia and Standard Life. I particularly like the look of the Standard Life Investments’ product.Standard Life manages over 10bn in institutional property mandates and this is its first foray into mainstream retail property. I feel this is a serious alter-native to the established funds in the market. I like the make-up of the fund, particularly the 20 per cent invested in fixed income, so your money continues to work while also providing liquidity . The rest is split 75 per cent property and 5 per cent cash. Its target is realistic – 5 per cent above the CPI over a rolling three-year period (around 7-8 per cent) built around an initial overweighting in top quality City and West End offices and underweight in retailers, specifically high-street shopping centres. Commercial property has outperformed equities, gilts, overseas equities and cash over one, three, five and 10 years and while we generally think the easy money has been made, you can still expect a return of between 6 per cent and 9 per cent a year from the asset class. This is a decent return from a good portfolio diversifier. I am impressed by SLI’s resources and the strong team they have running this fund – manager Andrew Jackson is to be supported by a team of 90 – and I will watch it closely.
A third of full-time workers are still not contributing to a pension, despite increased publicity on the woeful state of pension provision. Research conducted by B&CE Benefit Schemes, the not-for-profit stakeholder provider to the construction industry, shows that 37 per cent of full-time workers – 6.5 million people – are not contributing to a pension […]
Threadneedle Investments has brought out the absolute return bond fund, an Oeic that aims to provide a positive return in any stock market environment.The fund will invest in bonds, bond market derivatives and money market instruments under the Ucits III directive. It aims to beat a cash benchmark a target of 60 per cent above […]
Pink Home Loans
BM Solutions Two Year Tracker
Respondents to the Aifa poll on including multi-ties in the trade body could never have imagined that their under-representative responses would ignite such fervour. The multi-tied provider of any financial product is to consumer benefit what low-budget airlines are to the Euro-traveller. The price may represent value for money but the destination is more often […]
Re-enrolment is a sizeable task, and requires proper planning. You must ensure that eligible staff who are not already in your auto-enrolment pension scheme are put back into it.
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The curious goings-on in the world of financial services
Experts have played down any immediate moves from the FCA towards those firms that are not prepared for Mifid II regulation that comes into force on 3 January 2018. However, concerns remain that a “material number” of small asset managers have not yet started preparing for the major European regulation. The FCA expects firms to […]
OMGI chief executive and star fund manager Richard Buxton is set to lead a management buyout of the single-strategy funds division of Old Mutual Wealth with the backing of TA Associates. The £550m deal is set to be announced before Christmas, Sky News reports. The buyout is part of Old Mutual’s managed separation, which is […]