Unique property fund offers a hybrid exposure of listed real estate securities and direct long income properties, demonstrating lower volatility than a portfolio of REITs and greater liquidity than a fund of solely directly held properties


UK wealth managers and financial advisers expect to increase or retain their allocations to property asset classes over the next six months, according to new research conducted by TIME Investments (“TIME”), which specialises in asset-backed and income producing investments across real estate, infrastructure, renewable energy, and lending.

The research* conducted by TIME with over 200 advisers shows that 32% expect to keep their allocation to direct property the same over the next six months, and a third (33%) are planning to increase their exposure to the asset class. Just 18% said that they would reduce it.

When it comes to indirect property assets, such as real estate securities, 43% expect to keep their current allocations the same, and a further 27% expect to boost their exposure. Only 10% said that they were expecting it to fall.

The findings come as TIME:Property Long Income & Growth (“the Fund”), an innovative hybrid property fund that combines a portfolio of primarily UK listed real estate securities and directly held long income properties in defensive and economically sustainable sectors, marks its first anniversary since its launch last September. It is designed to provide retail investors with a consistent and attractive level of income alongside capital growth prospects.

Roger Skeldon, Co-Fund Manager of TIME:Property Long Income & Growth, comments: “There are significant pressures in the market from high levels of inflation, a tightening of financial conditions, and geopolitical tensions. Real estate has historically proven to perform well compared to traditional stocks and bonds in an inflationary environment and has a historically low correlation to interest rates. This is reflected in our new research which highlights advisers looking to make positive allocations to both direct and indirect real estate asset classes.”

The Fund was launched to fill a gap in the market by providing investors with a unique way of gaining exposure to the real estate market, with a greater level of liquidity than a fund of solely directly held properties and lower volatility than a portfolio of just listed real estate securities. TIME:Property Long Income & Growth also seeks to provide a degree of inflation linkage and an attractive diversification opportunity across a wide range of real estate sectors.

The Fund is actively managed and has a long-term approach to investing. The investment process is top-down and bottom-up, designed to blend both quantitative and qualitative analysis with the expertise of the specialist long income property team at TIME. The target asset allocation of the Fund is:

  • UK real estate securities – 47.5%
  • Direct long income property – 35%
  • Non-UK real estate securities – 10%
  • Cash – 7.5%

The Fund invests in a diversified range of economically sustainable commercial real estate sectors, such as supermarkets, care homes, healthcare, data centres and logistics. In essence, sectors that have attractive long-term characteristics primarily driven by their favourable market dynamics and attractive fundamentals which will support the continuation and growth in the long-term revenue streams of the underlying tenants. The portfolio has no current direct exposure to high street retail or office sectors.

Commenting on the outlook for real estate, Roger Skeldon, Co-Fund Manager said: “The economic outlook means there is likely to be further volatility in the markets, but the fundamentals of the underlying sectors we have exposure to remains strong, and long term rental growth is anticipated across the majority of these. The direct long income property exposure is expected to continue to reduce the volatility of TIME:Property Long Income & Growth and support the income return profile. As the Fund grows, the focus will remain on economically sustainable sectors with attractive long-term characteristics, and the direct property element will be further diversified with a continued focus on properties with long leases and inflation-linked rent reviews.”

TIME is part of the Alpha Real Capital Group with over £4.5 billion of assets under management. Most of these assets are in defensive and secure income real asset strategies. The group manages long leases across both the commercial, social infrastructure and residential sectors. The investment philosophy of the Fund is therefore closely aligned with that of the group, blending the expertise of managing long income property in the private markets with its experience in investing in listed markets. The Fund provides exposure to a portfolio of experienced institutional real estate managers that have built portfolios of high-quality assets. TIME:Property Long Income & Growth is co-managed by Stephen Daniels and Roger Skeldon with oversight provided by the Investment Committee.

*Research commissioned by TIME in August 2022, with 212 Financial Advisers taking part

For further information on TIME and the Fund, please visit www.time- investments.com

The value of investments and the income from them may fall as well as rise as a result of fluctuations in market, currency or other factors and investors may not get back the original amount invested. Any past performance data cited is not a reliable indicator of future results.

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Posted: 22/09/2022 Categories: News

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