As flows into traditional property investments have accelerated this year, fund buyers have been looking outside traditional assets to more esoteric investment options. Property has been one of the most popular asset classes this year. According to IMA sales figures, a net £315m flowed into the property sector during the month of September, an increase on £242m in August.
A number of prominent fund buyers have labelled property their favourite investment of 2014, and have continued to add to the asset class throughout the year.

 

However, strong inflows have led traditional open-ended property funds to increase cash holdings as they struggle to cope with this level of demand. For example, SLI’s and Henderson’s UK property funds have doubled in size over the past year to £1bn and £2.4bn respectively, and currently hold 23% and 16% each in cash. This has driven investors to seek out more esoteric investment options that have not been affected by such strong inflows and are in a position to continue taking advantage of the growth trend in the property market. David Coombs, head of multi-asset at Rathbone Unit Trust Management, said he has tried to avoid “chasing hot returns” by allocating to the Santander UK IPD Tracker, a structured note tracking the IPD index directly, and the Tritax Big Box REIT, which invests in large distribution centres. City Asset Management’s James Calder named the Freehold Income Authorised fund run by TIME Investments, which invests in ground rents; and the Target Healthcare REIT, allocating to care homes, as two of his favourite niche property investments.

 

You can view the article in full on the Investment Week website.

Posted: 24/11/2014 Categories: News

Terms and Conditions

TIME does not accept direct investment. If you wish to invest in one of our solutions you will need to take advice from an authorised financial adviser. Nothing within this website is intended to constitute investment, tax or legal advice. Our solutions place your capital at risk and you may not get back the full amount invested. Tax treatment may be subject to change and depends on the individual circumstances of each investor. The availability of tax reliefs also depends on the investee companies maintaining their qualifying status. Neither past performance or forecasts are reliable indicators of future results and should not be relied upon. Unquoted or smaller company shares are likely to have higher volatility and liquidity risks than other types of shares quoted on the Main Market of the London Stock Exchange.