UK bricks-and-mortar property funds can be highly illiquid but avoiding them does not mean investors cannot still use property as an important source of diversification, writes David Jane
Whenever we are asked for our views on property, in almost all cases the question seems to mean: "What is your view on UK bricks-and-mortar property funds?" In practice, this is an area we do not consider. The reason is quite simple - they can be highly illiquid, and liquidity is core to our process. This is not, however, to say we cannot use property as an important source of diversification in our portfolios. Property, like equities and bonds, is driven by its region's economic and interest rate environment but often performs in ways that provide an important diversification benefit. ...
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