The British Property Opportunities Fund, managed by Managing Partners Limited (MPL), the investment boutique, has delivered outstanding returns over the last year compared with the average performance in the Investment Management Association's Property sector. It has also beaten all those funds in the sector invested solely in UK property.
The fund, available to both retail and institutional investors, has returned 4.18% over the year to 1 October 2009, net of charges. It has also returned 11.39% from its launch on 31 January 2008 up to 1 October, equivalent to an annualised return of 7.05% after charges. The average return for the IMA sector was -9.12% over the year to 1 October 2009 on a bid-to-bid, net income reinvested basis.
The fund allows investors to participate in the UK residential and commercial property market without the issues of managing a diverse property portfolio. As a result of having bought properties at significant discounts throughout the downturn of the last two years, the fund has minimised negative equity risk and the liquidity problems that have beset many other property funds.
Jeremy Leach, Managing Director of MPL, commented: "The UK property sector has seen prices spiral down over the last two years, impacting negatively upon funds holding legacy properties bought at or near the top of the cycle. Our strategy is to buy properties significantly below market value and to buy cautiously, cushioning the fund against any potential fall in the market. In the meantime, the fund is reaping very high rental yields, giving investors a good return even before capital returns come through in the longer term.
"It is interesting to note that if investors look at those funds in the IMA Property sector that just invest in the UK and eliminate those that invest globally, there are none that have beaten the British Property Opportunities Fund."
Source: Citigate Dewe Rogerson