Bestinvest says
This core commercial property fund, was rated three stars under former manager, Gerardine Davies. However, we suspended our rating following her departure in 2007 and we are still yet to rebuild our confidence in the new manager. Therefore as an alternative consider our recommended funds in the sector.
To achieve its objectives of balanced returns from commercial property the fund mainly invests in direct property assets (typically 75% of the portfolio) with most of the balance invested in property-related assets (typically property shares), government and other public securities and units in collective vehicles. Cash, typically up to 10%, is usually kept to one side to meet cash flow requirements.
Direct property purchases are preferred and a strong credit rating for tenants is a primary aim for the management team so as to limit tenant default risk. Valuations are undertaken monthly by an independent third-party.