REITS / Infrastructure Funds

nirish

I currently have most of my investment pot in 100% equity global trackers through Vanguard and lending on a range of P2P platforms.

I am planning to diversify this by placing 5-10% in Property/Infrastructure and have chosen a few initial candidates. Any thoughts or alternatives welcome!

Picton Property REIT - Commercial Property Exposure
Warehouse REIT - Urban Warehouses for next day delivery demand
NewRiver REIT - Retail prob controversial but local focus, high dividend & good value/NAV
Primary Health Properties REIT - Medical care required Brexit or not
Sirius Real Estate - Brexit Wary German Exposure Business/Industrial
HICL Infrastructure
TRIG Renewables

Aminatidi

Because I don't know nearly enough about the sector I have some money in VT RM Alternative Income and Foresight UK Infrastructure.

You are paying several layers of fees but they do seem a good way to get a much broader exposure than one or two holdings.

Voyager2002

Firstly, I would look for global diversification. My sense is that the UK property market is over-valued, but I am usually wrong about this kind of thing.


Secondly, I would urge you to look at infrastructure rather than simply property. And you list some infrastructure funds near the end of your possibilities: HICL is exposed to political risk so you might consider 3I instead (the same remarks apply to JP Laing Infrastructure which you might also consider). TRIG has the same management as HICL and is something I hold but be aware that it is confined to a single sector, renewable energy. The price of TRIG has been depressed at the moment because of a new share issue so perhaps that is a buying opportunity. You should also consider Greencare (which I also hold): Greencare has shown better performance than TRIG but is restricted to the UK and to wind energy. Perhaps you should consider an ETF that invests across the global clean energy sector: iShares offers at least two of these products, and there are other options as well.

firestone

would note that you have used Vanguard for trackers to invest most of your pot so assume you were looking at costs and ease of use.The new REIT and IT you are looking at may have much higher fees (and possibly a performance fee) so would take that into account
There are ETF's in the area's you are looking and also trackers i.e L&G do both a global REIT and infrastructure tracker if costs are an issue

Stirfry

One I have been looking at First State Global Listed Infrastructure.

dividendhero

Have you considered TR Property Investment Trust (TRY)? Long term capital and income growth have been excellent, it's also well diversified away from UK

Stirfry

I hold TRY been good for me.

jaybeetoo

How about iShares Global Property Securities Equity Index Fund (UK)

cloud_dog

The above two offerings predominantly invest in the equity of companies that hold/invest in physical properties.

When investing in property people usually (not always but usually) are looking to hold physical property as an asset diversification and in many circumstances because of the potential for better certainty on the income side due to long lease agreements.

So when talking property you need to think in terms of what are you trying to achieve.

nirish

Thanks everyone for the input.

I'm contemplating a mix of the various suggestions - I would like to hold a diverse basket of REITs/ITs themselves, as suggested to invest in the actual property itself. I'll probably stick mostly to the UK market for this as it's easier to be aware of current market conditions.

When it comes to low cost ETF trackers this is more similar to what I look for in equities and the global exposure would be good for balance so I'm also looking at:
iShares Global REIT ETF
iShares Global Infrastructure ETF
In fact for Infrastructure exposure I may solely use the ETF rather than specific funds.

I'd be interested in any further favoured UK REITs/ITs for consideration.
Certainly TRY are an option although they are mostly invested in company shares with a minimal property holding, I appreciate their recommendation!

firestone

you say only looking at ETF's for infrastructure but it might be worth checking out the L&G Global Infrastructure Index fund which did only launch last year so not much history but does seem pretty competitive on fee's