The Charities Property Fund scores again as one of the top performing pooled property funds for the second year running.
The Charities Property Fund scores again as one of the top performing pooled property funds for the second year running.
In 2002, investors in the Fund saw total returns of 10.3 per cent, compared with an average of 8.5 per cent for property unit trusts. The Fund also outperformed both bonds (10.1 per cent [FT Government Securities Index]) and equities (-22.7 per cent [FT All Share Index]).
"Over the year the Fund has given a net income return to investors of more than 6%." Alison Puhar, Director of Savills Fund Management says "We remain underweight in London and Southern office sub sectors where rental values are falling and underperformance in 2003 against the market is likely. With the high income target and a focus on retail warehouse parks and industrials, the Fund is relatively defensive and new purchases will continue to focus on location and covenant strength."
Ben Ruck Keene, Bursar of Corpus Christi College Oxford adds "The rationale for the Fund has been clearly justified; good performance, a wide spread of risk and an elimination of significant management effort and cost on the part of the investors. We are very pleased with the decision to switch from direct property investment."
Charles Mesquita, charities specialist at Carr Sheppards Crosthwaite. said "We believe a tax efficient property vehicle such as The Charities Property Fund continues to represent a good investment for many charities as it provides useful diversification to a balanced portfolio particularly in these uncertain times."