Charities that have invested in the first property common investment fund have seen it outperform other pooled property funds during its first full year.
The Charities Property Fund, managed by Carr Sheppards Crosthwaite and Savills Fund Management, has outperformed property unit trusts by more than 4% during 2001. The return to unit holders, on an offer to offer basis with income distributed each quarter, was 10.5% compared with the average for all property unit trusts at 6.1%.
Since its launch in September 2000, The Charities Property Fund has attracted over 120 investors taking the total fund size to £48 million.
Charles Mesquita, Charities Specialist at Carr Sheppards Crosthwaite, says: "Property is a natural home for charity funds given the relatively high yield available compared with bonds and equities. It has been the best performing asset class over the past five years."
Mr Mesquita also points out that now is a good time for more charities to move into indirect property ownership and sell off badly performing directly-owned properties. He says: "By investing in a pooled property fund, such as The Charities Property Fund, investors can reduce management costs and gain exposure to a diversified portfolio of a wide range of property. The Fund's exemption from Stamp Duty means it is also a more tax efficient route for investment than the range of property unit trusts that are available."
Alison Puhar of Savills Fund Management, Fund Director for The Charities Property Fund, says: "We have built up a well-let portfolio with long income for The Charities Property Fund and I am delighted by the level of outperformance. We believe that the outperformance and the fact that the Fund is now nearly £50 million, will mean an acceleration in Fund growth over the next 12 months."