Your Basket
Your Basket
There are no funds in your basket. To add funds to your basket use the Green Plus Icon wherever you see it next to a fund.
Fund name
Aberdeen American Growth  
Fidelity American  
Schroder UK Mid 250  
M&G Recovery  
Jupiter Merlin UK Growth  
Close Basket Open basket

Login

Login
Password Reminder
Not Registered? Click Here

Register

Register
It's look like you're leaving us

What would you like us to do with the funds you've selected

Show me all my options Forget them Save them
Customise this table
 
 
Poll

Would you be concerned if a manager of a fund you owned took charge of another portfolio as well?

Yes
No

Vote

 

Investments

Investment Trusts / Sector analysis

Property - Direct Europe
rss feed RSS Feed
The Property - Direct Europe sector consists of trusts that invest in commercial property across Europe. These companies gain exposure to the property asset class through a portfolio of commercial properties, such as offices, retail units and warehouses. Unlike investing in property securities, direct property brings with it all the responsibilities of being a landlord as well as a portfolio manager, and brings with it opportunities to generate returns from a variety of sources. As well as making a return on capital values rising in line with the property market, additional capital appreciation can be made from developing the property and improving its desirability. Another significant source of return is the yield on the property in form of rental income; maximising rental income through rent reviews and minimising the number of vacant properties in the portfolio is another important function of property investment companies. There are also significant additional risks with direct property investing. Liquidity is the main concern; property is not actively traded on an exchange and it may take time to find a buyer and complete a sale, this can be a major risk if the companies are in need of cash to meet redemptions. Additionally, property is not easily divided, if a firm wishes to generate a small amount of cash, it is unable to sell a small amount of property; it must sell an entire property which may be less than optimal. The liquidity risk also comes into play on the upside, it may take time to find a suitable property to invest in meaning the fund will be holding large amounts in cash far longer than it would like, which will have a negative impact on returns. Finally, the untraded nature of a property investment means that it is almost impossible to assess the value of an asset until it is actually sold. This makes the frequent valuation of the portfolio quite difficult, and often appraised, or estimated, values will be used. A lack of timely and accurate price information can make it difficult to keep track of the company’s performance
in association with
logo

Property - Direct Europe



AIC definition of sector
The sector profile is not yet available.

Top ranked constituents by 3y performance (%)
Key to codes

LC : Low correlation to benchmarks
SH : Fund with a short history
US : Fund in an unrated sector

Cumulative performance
  1m 3m 6m 1y 3y 5y
Property - Direct Europe 3.0 -13.2 -10.3 -19.0 -17.8 -30.9
performance
 
  • Stay connected with FE trustnet
  • Authorised and Regulated by the
    Financial Services Authority
  • © Trustnet Limited 2013. All Rights Reserved.
  • Please read our Terms of Use / Disclaimer
    and Privacy and Cookie Policy.
  • Data supplied in conjunction with Thomson Financial Limited,
    London Stock Exchange Plc, StructuredRetailProducts.com
    and ManorPark.com
What do you think about this toolbar?
Close permanently
Close for this session