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SKANDIA M&G PROPERTY PORTFOLIO LF - Fund overview

Bestinvest rating 3 stars


Overview of SKANDIA M&G PROPERTY PORTFOLIO LF

This fund offers exposure to the UK commercial property sector predominantly by investing in bricks and mortar property. The manager is backed up by the Prudential Property Investment Managers (PruPIM). The fund is structured to offer 'core plus' exposure to the UK commercial property market. The underlying sector exposure will tend to be broadly in line with the IPD Benchmark. In April 2012 we downgraded this to 3 stars, as we now prefer funds of property shares.

Standard Initial Charge

No data available.

Fund summary

Sector  –
Product type  INSURANCE BOND
Launched  March, 2006
Size  £29m
Yield 0.0%
Charging basis  –
Dividends paid  –
Bid price 82.90p

Fund Charges

Standard Initial charge
Initial charge via Bestinvest
Additional bid/offer spread 4.93%
Annual management charge
Total expense ratio 0.00%
Reduction in yield (10yr) 0.50%

Bestinvest says


This has a high quality portfolio of c.150 properties valued at £1.9bn spread throughout the UK. We place high importance on long lease length (14 years), low vacancy rate (5%) and low tenant risk. Its underlying sector exposure will tend to be broadly in line with the IPD Benchmark for UK Commercial Property. The high cash position (15%) may hold back performance and dividends. The fund is structured to offer 'core plus' exposure to the UK commercial property market. The manager has access to one of the largest groups of analysts in the UK, Prudential Property Investment Managers (PruPIM). In April 2012 we downgraded this to 3 stars, as we now prefer funds of property shares.

Portfolio

skandia m&g property portfolio lf asset allocation illustration
Allocation Proportion
Equity
High yield bonds
Quality bonds
Property 84%
Commodities
Hedge
Fund cash 16%
skandia m&g property portfolio lf equity geographic illustration
Allocation Proportion
UK 100%
Europe
Nth America
Japan
Pacific
Other Equity

No data available.

Investment process


The fund aims to provide long term value by investing in UK commercial property. The fund targets 5 key property sectors: standard retail, retail warehouses, shopping centres, offices and Industrials. The manager has access to one of the largest groups of analysts in the UK, Prudential Property Investment Managers (PruPIM). Around 1,500 to 2,500 new properties are screened annually by PruPIM (the underlying managers) and prospective properties are analysed through a number of bespoke valuation models. The strategy is continually reviewed with importance particularly placed on: tenant exposure, lease expiry profiles, vacancies (current and potential) and liquidity. The core of the fund will consist of prime properties, but the manager will also invest in some secondary assets which offer management opportunities.

The value of your investments and the income from them can go down as well as up, and you can get back less than you originally invested. Past performance or any yields quoted should not be considered reliable indicators of future returns. Before investing in funds please check the specific risk factors on the key features document or refer to our risk warning notice as some funds can be high risk or complex; they may also have risks relating to the geographical area, industry sector and/or underlying assets in which they invest. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.

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