This view is confirmed by most commercial property specialists. However, the yields are still higher than equities and in many cases above comparable gilt yields.The fundamentals of the property sector still remain firmly intact, with most rents likely to rise at least as fast as inflation. Returns in this sector have proved to be less volatile than even Government bonds over the past 15 years. This is because leases on commercial property are generally long term, often with upward-only rent reviews, while tenants tend to be reliable because commercial entities can ill afford to lose their work premises. Furthermore, robust economic growth is leading to a rise in rents, particularly in the office and industrial property sectors. However, retail rents are unlikely to perform as well due to some falling profits in this sector. One extraordinary statistic, according to the Investment Management Association, is that only 2.7 per cent of funds are held in property. I believe that at least 20 per cent should be held in commercial property in realistic portfolios, with rather more in conservative portfolios. The fund I like best is the New Star property unit trust under the excellent management of Roger Dossett and his team. This fund does also have a small proportion invested in property shares under the management of the highly regarded UK equity manager Stephen Whittaker.
A simple plan can raise public confidence in protection insurance
I find it incredibles that the FSA has called for product providers to take more responsibility for the quality of advice that is given by advisers. The FSA will be aware that the advice process primarily begins with (among other things) a fact-find, possibly supplementary questionnaires, full discussion with the client, recommendations, further discussions, decisions […]
Capita has picked up the contract to deliver Co-Operative Insurance Services business processing around 5m new policies.The new business win sees Capita now processing between 13m and 14m policies under administration.Capita will deliver customer services, policy administration, new business and claims activities and their associated technologies across CIS’s life and pensions and unit trust operations. […]
Venture capital trusts pro- vide little benefit beyond the tax breaks and are poor in terms of investor transparency, say industry experts. At Money Marketing Live last week, outgoing Gerrard investment communications director Brian Tora said investment advisers should look at private equity instead of VCTs and enterprise investment schemes, saying they offer a more […]
Jelf Employee Benefits closely examines healthcare provision and challenges within Nigeria. This will be of particular interest to HR decision makers with employees based in Nigeria, and assesses the environment, risks, facilities and safeguards that are relevant to organisations that are actively deploying expatriate staff in this location.
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A long‑term strategy for the asset management industry will be published by the Government, it was announced in today’s Budget. The Investment Management Strategy 2 will ensure the industry “continues to thrive and deliver the best possible outcomes for investors and the UK economy,” the Autumn Budget policy paper says. The Government will work closely […]
The state of the UK economy with Brexit looming In 2017, growth is expected to come in at 1.5 per cent, falling to 1.4 per cent in 2018 Through 2019 and 2020, growth is set to fall again to 1.3 per cent, before picking up to 1.5 per cent in 2021 and then to 1.6 […]
Chancellor Philip Hammond has scrapped stamp duty for first-time buyers on properties worth up to £300,000. Speculation was rife in the media in the run up to the announcement that the tax would be scrapped altogether for FTBs to make home ownership more affordable for young people in the UK. The Chancellor has said that […]