We are delighted to announce that TIME’s fund manager, Nigel Ashfield, who runs our flagship TIME:Commercial Freehold fund, has received the Citywire AA rating for the first time, putting him in the top 5 per cent of the 16,000 fund managers that Citywire tracks globally.
The fund delivered an income of 4.1 per cent last year, and capital growth of 0.7 per cent. Since its launch three years ago, it has consistently delivered an annual inflation linked income of over 4 per cent and some capital growth.
In terms of assets under management, in 2017 the fund enjoyed growth of over 100 per cent, and now exceeds £130 million AUM. This growth has been driven by investors increasingly looking for a secure inflation linked income and low volatility – two features offered by commercial property ground rents and long-leases. This trend is supported by the most recent CBRE Long Income Index, which shows that long-income property outperformed the mainstream UK real estate market in the 12 months to December 2017 by around 2 per cent on average.
With traditional property funds predicting low single digit returns, investors are increasingly looking at securing income from longer-leases and ground rents to help make up the difference. Alternative property assets with long leases such as low service hotels, gyms, nurseries and care homes in the right locations are very secure income providers for investors, offering steady, long-term returns.
David Lumley of London based Arena Wealth Management, says: “I have been a supporter of Nigel and his long income funds for many years now and I’m delighted to see his expertise recognised by Citywire. This double AA rating comes as no surprise as the performance of Nigel’s funds over the years has been outstanding. Long income is a popular sector with our clients and the TIME funds offer income security, inflation protection and lower volatility making them a good fit for many investors.”
Long income can also provide a useful diversifier to existing portfolios as it has historically been uncorrelated to other assets. So those who already have a heavy equity exposure but are seeking stable returns and liquidity can access a new sector and not compromise on yield. Some advisers also use long income as a neutral position as it offers better returns than cash but lower volatility than equities. Finally, long income is often classed as ‘alternative’, so funds in this space are a useful way to fulfil this area of a client’s portfolio, through a lower volatility asset.