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Skandia offers a contrast

Skandia Investment Management

Skandia Global Property Securities (La Salle) Fund

Type: Oeic

Aim: Growth and income by investing in global property shares including real estate investment trusts

Minimum investment: Lump sum 1,000, monthly 50

Investment split: 28.24% office, 25.05% retail, 20.21% diversified, 11.79% residential, 7.11% industrials, 6.64% hotels, 0.96% cash

Charges: Initial 5%, annual 1.5%

Commission: Initial 3.5%, renewal 0.5%

Tel: 020 7220 3531

The Skandia Global Property Securities (La Salle) fund is an Oeic that invests globally in property shares including real estate investment trusts.

According to Capital Trust Financial Management partner Bruce MacFarlane, due to the nature of property, most UK investors have gained their exposure to commercial property primarily in the UK. He thinks the new fund will offer quite a contrast to this with its largest holdings in North America, Asia and Europe.

This product provides IFAs and their clients with the opportunity to access a globally diversified portfolio of property-related assets. The majority of the funds assets will be held via Reits which will ensure liquidity and diversification due to a relatively low level of gearing, he says.

Continuing his discussion of the funds positive features MacFarlane also points out that it will use derivatives to help reduce currency risk for UK investors. He believes the fund looks good and should prove popular with those clients requiring exposure to the global property market.

Casting an eye over the product literature, MacFarlane says: The literature is clear and easy to understand, while adviser remuneration is in keeping with similar products.

However, on the downside MacFarlane says: While the product is fine and the timing of the launch good for Skandia bearing in mind the demand for property funds, clients would be well advised to take care when investing in an asset class that looks to many analysts rather stretched at this point.

Scanning the market for rival funds MacFarlane says: With the current demand for property funds, this Skandia fund is relatively unique in the market, shifting emphasis from UK dominated property funds to a more globally diverse portfolio. He thinks the main competition will come from more mainstream UK property dominated funds including those from Norwich Union and Britannic Asset Management.


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

Overall 7/10


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