15% in 3 months! Why aren't people making more of a fuss about these funds?

mr_fishbulb

So I was looking through my pension funds last night and the performance over the last 3 months.

All but one seem to be plodding along normally, but would anyone want to hazard a guess as to what type of fund the black one is?



It's a UK commercial property one. Now either I've got my eyes closed, or people don't seem to be talking about these again. Are they still sceptical from the pain before and the 6 month wait to get out of them?

Pity I've only got 5% in there!

ses6jwg

I think its the because the property outlook is far from certain.

What's it called?

Is it an investment trust?

SG_Guy

Commercial property is coming off a low base, hence the black line in your chart. Outlook in 2010 is not particularly good going in to the second half especially if unemployment and write-downs continue but the recent revivial is expected to continue for the first half of this year. 5% is a reasonable allocation to property/ property equities.

mr_fishbulb

ses6jwg wrote: »

I think its the because the property outlook is far from certain.

What's it called?

Is it an investment trust?

Unit trust. Ignis Asset UK Property.

mr_fishbulb

SG_Guy wrote: »

Commercial property is coming off a low base, hence the black line in your chart. Outlook in 2010 is not particularly good going in to the second half especially if unemployment and write-downs continue but the recent revivial is expected to continue for the first half of this year. 5% is a reasonable allocation to property/ property equities.

Yeah, the thing on my mind is that we probably haven't seen the last of the high-street closures. And it took long enough to fill all the Woolies!

atypical

Mark Dampier made some noise about commercial property around 3 months back, he later added Threadneedle UK Property to Wealth 150.

turbobob

Brick and mortar property funds are difficult to value because its an illiquid asset, and valuation is a matter of opinion rather than fact. I think the managers have a fair amount of descretion over how they value the fund. At times when everyones trying to get out of the fund they can go to a less favourable valuation basis. If you look at a historic chart you can often see big "steps" in some property funds, where I guess the valuation basis has changed.

dunstonh

It's a UK commercial property one. Now either I've got my eyes closed, or people don't seem to be talking about these again. Are they still sceptical from the pain before and the 6 month wait to get out of them?

Pity I've only got 5% in there!

The sector allocations I use increased the holdings across most the risk profiles to 15% last year. They had typically been around 5% for a few years before. The September updates is when they moved it up to 15%.

The problem with property is that the turn was expected at some point but no-one knew when. You never really know when its going to bounce. Same goes for equities. Do you go back in when the FTSE is 4500, 4000, 3500 etc.

The thing to be wary about with property is that the main gains are because the pricing of the funds is based on a different valuation method . So, it will be more of a quick bounce and then stability (until the next correction or liquidity issue comes along).

EdInvestor

The big bounceback in CP first apppeared in December as you can see in the chart:)There have been quite a few articles in the last few weeks reporting this.

mr_fishbulb

EdInvestor wrote: »

The big bounceback in CP first apppeared in December as you can see in the chart:)There have been quite a few articles in the last few weeks reporting this.

Eyes closed it is then

yelf

remember: liquidity is a risk too.

If you look at the REIT markets performance recently this bricks and mortar performance isnt a surprise: expect it to keep going up now for at least 6 months