Thoughts re property funds?

Aged

Until recently, I had the Henderson UK Property PAIF fund as part of my portfolio, but the fund is now closed, the assets have been sold off and my share of the proceeds have been returned to me. Is it worth trying to find a new property fund to invest in and if so, does anyone have any suggestions for a possible replacement?

dunstonh

Is it worth trying to find a new property fund to invest in and if so, does anyone have any suggestions for a possible replacement?

Most are going the same way.  The holding of physical property in open-ended funds is problematic in the modern world (not a problem in the past).  

Nowadays, you either don't include property or you use property share funds instead.

Aged

dunstonh said:

Nowadays, you either don't include property or you use property share funds instead.

Hi Dunston thanks for replying. 'Property share funds' - does that mean investment trusts?

Prism

Investment trusts directly or open-ended funds or ETFs that hold a bunch of those trusts.

Aged

Prism said:

Investment trusts directly or open-ended funds or ETFs that hold a bunch of those trusts.

I thought Dunston said open-ended funds were problematic nowadays? Or am I misunderstanding you?

dunstonh

Aged said:

Prism said:

Investment trusts directly or open-ended funds or ETFs that hold a bunch of those trusts.

I thought Dunston said open-ended funds were problematic nowadays? Or am I misunderstanding you?

Bricks and mortar property funds are problematic.    Property share isnt.

ivormonee

If someone might be considering adding property to diversify a portfolio I would probably be opting for a property fund that is itself diversified and probably uses an investment trust as the type of fund. There are a few that do this. One that is good value at the moment, if we accede that a wide discount of price to NAV is an indicator of value, particularly where for that fund historically it has been narrower or even at a premium, might be Balanced Commercial Property Trust (BCPT). I've added this to my list of funds as it is very diversified covering many areas of commercial property and is an investment trust.

LHW99

I have held TRY for some years. Its discount is a little wider at the moment then it has been. It holds UK and international property / property shares but DYOR

Prism

Aged said:

Prism said:

Investment trusts directly or open-ended funds or ETFs that hold a bunch of those trusts.

I thought Dunston said open-ended funds were problematic nowadays? Or am I misunderstanding you?

Open ended funds that hold property directly are a problem. Open ended funds that hold investment trusts or companies that themselves hold property are not a problem. For example the ishare global property securities fund holds REITs like Prologis, Simon, Segro etc. Those companies and trusts are liquid as they are traded on the public markets.

Linton

dunstonh said:

Aged said:

Prism said:

Investment trusts directly or open-ended funds or ETFs that hold a bunch of those trusts.

I thought Dunston said open-ended funds were problematic nowadays? Or am I misunderstanding you?

Bricks and mortar property funds are problematic.    Property share isnt.

True, but I dont see property holding equity as any thing like the same thing as a holding of property.  Surely the point about buying actual property is that it is independent of the volatility of the stock market.  The failure of property OEICs thanks to the demands of fund holders wanting instant access to their money removes property completely as a viable investment for the small private investor.  Unless someone knows of some other vehicle.

Prism

Linton said:

dunstonh said:

Aged said:

Prism said:

Investment trusts directly or open-ended funds or ETFs that hold a bunch of those trusts.

I thought Dunston said open-ended funds were problematic nowadays? Or am I misunderstanding you?

Bricks and mortar property funds are problematic.    Property share isnt.

True, but I dont see property holding equity as any thing like the same thing as a holding of property.  Surely the point about buying actual property is that it is independent of the volatility of the stock market.  The failure of property OEICs thanks to the demands of fund holders wanting instant access to their money removes property completely as a viable investment for the small private investor.  Unless someone knows of some other vehicle.

REITs or funds of REITs?