Type: Unit trust
Aim: Growth by investing globally in real estate investment trusts, closed-ended property funds and listed property companies
Minimum investment: Lump sum £2,500, monthly £100
Investment split: 36% US, 20% Europe (ex UK), 13% Australia, 12% Japan, 9% UK, 5% Canada, 5% Hong Kong/Singapore
Place of registration: Guernsey
Charges: Initial 5%, annual 1.5%
Commission: Initial 3%, renewal 0.5%
Tel: 020 7038 7005
The Sarasin CI global property fund invests predominantly in real estate investment trusts – Reits – in countries such as the US and Australia, but can also invest in closed-ended property funds and listed property companies.
Positive Solutions IFA John Hill thinks this fund stands ahead of the rest at the moment. He says: “This fund is good for further balance of a portfolio with a long-term view to rebalance some of the existing equities. The liquidity is a useful feature but is it needed when looking at things in the long term? However, would be handy if you need to move funds quickly. “
Hill regards the product literature as quite good for a global fund and likes the fund for providing diversification across regions on the world and away from the UK centric funds.
Looking at the possible drawbacks Hill says: “One drawback is the fact that one of the advantages – the tax situation – is relying on governments not to change the rules. The more success, the more the temptation for governments to want a slice.” He also points out that for a client taking income the charges could erode capital but due to the liquidity they could get out of it easily.
Hill concludes: “This is a worthwhile diversification to add to most portfolios and I do not see a strong competitor at the moment.
Suitability to market: Good
Investment strategy: Good
Adviser remuneration: Average