By ROBERT HARLEY 18/11/2009
M&G Property Portfolio is a ‘core plus’ UK bricks and mortar commercial property fund. The focus of the portfolio will be prime, with some exposure to secondary property which offers asset management opportunities. A small percentage of the M&G Property Portfolio assets may also be invested in specialist bricks and mortar funds and property derivative instruments, it is unlikely the M&G Property Portfolio fund will invest in property shares in the near future. Sector exposure will tend to be broadly in line with the IPD.
The M&G Property Portfolio fund currently carries a lower yield relative to peer group funds on account of its long lease profile and bias to higher quality tenants. Voids are comfortably below the IPD average and there is a healthy cash balance amounting to 20% of NAV. The manager is targeting a cash level of approximately 10% by the end of Q1 2010. The M&G Property Portfolio is awarded our highest 5 star rating.