Investment of the week

Posted On Friday, 28 September 2007 02:00 Published by
Rate this item
(0 votes)
Investors looking for a fund that invests directly into a diversified range of UK properties as well as a range of property shares

OMGB UK Property Fund

By Stephen Cranston

Who it's for: Investors looking for a fund that invests directly into a diversified range of UK properties (80% of the fund) as well as a range of property shares (20%). OMGB stands for Old Mutual Guernsey Branch. It is one of the five most popular funds available on the Old Mutual International life account platform.

Who runs it: It's a feeder fund that invests directly in the New Star Property Unit Trust, a collective investment regulated by the UK Financial Services Authority. The portfolio managers are Roger Dossett and Gregor Logan.

How risky: As most of the fund's assets are not listed shares, it does not show the same volatility as most other property funds - though the fund has been affected by the recent loss of confidence in the UK property sector in the wake of the subprime investment crisis. The fund is mostly invested in blue-chip properties, many in the City of London. Chances are that the subprime crisis will have no impact on its tenants' ability to pay rent.

How it has performed: Over the past 12 months it has returned 8,3% in sterling, compared with 15% in the previous 12 months.

The FM's view: Investing in UK property offers useful diversification for SA investors, as the asset class has little correlation with local assets.

 

Financial Mail


Publisher: I-Net Bridge
Source: I-Net Bridge

Most Popular

Residential sectional title sales again on the rise

May 27, 2021
Andrew_Golding_Golding_PropertyGroup
Over the past 15 years, the sectional title market in South Africa has become entrenched…

Ongoing property market uncertainty makes the right finance partner key to extracting value

May 26, 2021
Claire Denny
Results from the listed property sector in 2020 showed property values reducing by an…

Pick n Pay and Fortress co-invest in a super distribution centre development

May 26, 2021
Fortress_Pick_n_Pay
Fortress REIT announced that their biggest logistics development to date was signed with…

Exemplar REITail declares final dividend of 49.07 cps and announces 100% distribution

May 25, 2021
Mall of Thembisa
Rural and township retail specialists, Exemplar REITail, have declared a final dividend…

East Rand Mall will soon deliver the first phase of its major taxi rank upgrade

May 26, 2021
Phase 1 upgrade to the taxi rank at EastRand Mall
The first-phase upgrade of East Rand Mall taxi rank in the retail heart of Boksburg,…

Please publish modules in offcanvas position.