Fund Objective

To achieve income and capital growth predominantly through investment in UK real commercial property.

View on Past Performance

The IPD UK Monthly Index for July 2008 illustrated all property total returns over the month of -1.3% reflecting a further fall of 1.8% in capital growth. Rising yields continue as the principal driver for the decline in capital values; however, all property rental value growth continues to be negative (-0.2%) on a three month analysis. Income returns, in contrast, remain comparatively constant. The All Property Equivalent Yield has risen further over the month to 6.94%.

Future Expectations

"The continued impact of the ""credit crunch"" and weakening wider economic outlook has resulted in the market deteriorating in terms of sentiment and levels of activity during the year. Further rises in property yields remain likely, at least in the short to medium term. The risk of a ""double dip"" scenario of yield shift followed by rental decline continues to increase which in conjunction with the continued yield shift has led us to downward adjustments in our forecasts of 2008/2009 returns."

Fund Details