You decide: Commercial property v fixed income

PA PORTFOLIO

clock • 4 min read

As outflows from fixed income hit record levels, Rebecca Jones asks three fund managers whether UK commercial property could work as a substitute.

James de Bunsen, Multi-manager, Henderson Commercial property offers an attractive yield and is fairly stable. The headline yield on the IPD index is around 6% but there is a big polarisation between prime property and sub-prime property. Prime property tends to be Central London (West End offices, etc.) where a lot of foreign buyers have bought up assets and pushed the yield down to 3% and below. However, retail units in other regions and provinces are still yielding 8% to 10%. The Henderson UK Property fund does not chase yields by buying sub-prime assets. Even so, what the manage...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

AJ Bell cuts fees across multi-asset income range

AJ Bell cuts fees across multi-asset income range

£1.5bn of inflows this year

Beth Brearley
clock 14 November 2024 • 1 min read
Tatton AM launches range of passive funds as AUM surpasses £20bn

Tatton AM launches range of passive funds as AUM surpasses £20bn

Net flows double from last year

Cristian Angeloni
clock 13 November 2024 • 1 min read
Mabel Insights adds DFM partner

Mabel Insights adds DFM partner

Additional Waverton data to be available on comparison site

Jen Frost
clock 12 November 2024 • 2 min read