View more on these topics

Strutt offers low entry to property

STRUTT & PARKER REAL ESTATE FINANCIAL SERVICES

Sprefs Commercial Property Fund

Type:
Closed-ended fund

Aim:
Growth and income by investing in UK commercial property

Minimum investment:
Lump sum £15,000, Isa £3,000

Investment split:
19.7% industrial, 25.3% offices, 55% retail

Place of registration:
Dublin

Charges:
Initial 5%, annual 1.25%

Commission:
Initial 3%

Tel: 0870 420 5511

Strutt & Parker Real Estate Financial Services has designed the Sprefs UK commercial Property fund, a commercial property fund for retail investors with small amounts. It invests in an institutional fund, the Deutsche UK managed property fund which in turn invests in three sector-specific Deutsche property funds.

City Asset Management director Anton Robinson thinks this fund will find a place in the market because there is currently a shortage of good property portfolios with low minimum investment levels. He says: “Although £15,000 is a high minimum, presumably you can buy for less in the secondary market. There is also a lower minimum of £3,000 through an Isa.”

Robinson draws attention to several features he likes about the fund. He regards the yield as attractive and welcomes the ability for advisers to choose a level of commission up to 3%. He also mentions that the underlying Deutsche fund has a good past performance record.

However, on the downside, he expresses concern that the underlying portfolio of 640 properties will be labour intensive for the underlying managers and very costly to value. He adds: “The portfolio is exposed to a downturn in the south and the asset mix is very close to the benchmark. It does not appear that the price of the fund will be quoted in the Financial Times and the prospectus, at over 50 pages, takes too long to download from the website.”

Robinson thinks Sipps and SSAS investors will look at funds from Standard Life and UBS and can see competition for the Sprefs fund also coming from existing property funds listed on the stock exchange. However, he says these funds are more likely to be geared.

BROKER RATINGS:

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

Overall 7/10:

Recommended

JO Hambro to cap UK growth fund at £350m

JO Hambro Capital Management expects to cap its UK growth fund at £350m this year as investors continue to clamour for exposure to its rigorous stock selection and risk control process. The fund boutique, which sets maximum asset limits on all its products, says it is not prepared to swamp its managers and risk hampering […]

FSA fines Allied Dunbar £725,000 for mortgage endowment mishandling

The FSA has fined Allied Dunbar £725,000 for mishandling mortgage endowment complaints, contending there were serious flaws in its procedures for handling mortgage endowment complaints The FSA says the flaws occurred between May 2001 and April 2003 and exposed a large number of Allied Dunbar customers to potential loss. FSA director of enforcement Andrew Procter […]

Annuity site gets boost

IFA William Burrows Annuities is upgrading its website to provide annuity information. Director Billy Burrows says www.williamburrows.com features the latest annuity rates and a personal annuity calculator. It also provides advisers and individuals with historic annuity rates so they can see how rates have changed over the last 18 months. Users can download Countdown to […]

VCTs are the sole encouragement for investors

Spending appears high on the agenda for the Chancellor but encouraging savers and retail investors has been avoi-ded, other than the pension announcements. Many of the measures that should be put in place to encourage the retail investor were announced before the Budget. By doing this, the Chancellor avoided bringing negative news into a very […]

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