Property funds

doc71

Hello,
Would anyone recommend the property funds with ebs & irish life. Is it a cheap way of benefitting from the commercail property markets. The SSIA is nearing the end would this a good alternative ??
Thks

D'Peoples Voice

doc71 wrote:

Hello,
Would anyone recommend the property funds with ebs & irish life. Is it a cheap way of benefitting from the commercail property markets. The SSIA is nearing the end would this a good alternative ??
Thks

You would need to look at the profile of the property mix, how does it tally with what you read on this website
http://www.cbre.com/International/EMEA/Ireland/Dublin/profile.htm?pageid=4
As pointed out on other threads, there have been relatively high vacancy ratios in the commercial market over the past few years, but again this was less prevalent in some areas of commercial properties.

ck1

Don't know much about the EBS Property Fund and the Irish Life fund is OK, one particular advantage of the Irish Life bond is that you can select to invest in one or both fund (i.e the UK side or the Irish side or both) – but presently particular for single premium investments my preference would be for UK commercial funds or European (but not really any nice European around at the moment or not that I have seen yet) obviously dependant on where the properties are and also who are the tenants, what sort of leases and break clauses are in place. Rental yield is important by so is Capital Growth. Is there going to be much Capital Growth now on Irish Properties??

Standard Life have a lovely property fund, completely ungeared, with average leases approximately 10 – 20 years. In the past 6 months this fund achieved returns of around 9% obviously past performance is not necessarily a guide to future performances. New Ireland have a lovely fund called Trilogy where the fund is split 1/3 property (UK Geared), 1/3 equities, and 1/3 High Yield Corporate Bonds. Riskier than the Standard Life Fund but also a nice fund. New Ireland also have a pure property fund which is invested 58% into Irish property and 21% into UK, remainder in other investment. This fund over the past 12 months provided growth of 12.94% gross (this growth figure is their most up to date in their investment bulletin). Hibernian Life is another one to look at, their property fund is quite nice.

doc71

thanks for the info...the charges on these funds look high

ck1

They are not too high in the overall run of things. What you need to do is get a quotation and look at the ROY figure on the illustration. Then of course you have to look at the past performance and consider the potential future performance. A lot of the info that I look at is not available to the public, such as the rental income, base valuation, leases, etc but the past performance should give you a good idea when viewed along side the illustrations.

Preferably I would prefer a fund giving growth of say 18% per annum gross with AMC of 1.2% to a fund with growth of 14% p.a with AMC of 1%. Don't forget there are many other charges involved in contracts apart from the Management Charges. What you need to look at is what you get back based on the standard growth rates on the illustrations which takes into account all charges and then look at the performances of the funds, thier fund managers, the companies history, the companies financial strength, you term to invest, etc.