Two other trusts in the same AIC sector, investing in direct UK property, have a yield of more than 6 per cent combined with strong performance. They are the £190m Standard Life Investments Property Income Trust, managed by Jason Baggeley, and the £291m F&C UK Real Estate Investments trust, which is run by Ian McBryde. On the open-ended fund side, most funds have a yield of less than 5 per cent.
The best-performing fund in the sector – when property equity funds, funds invested in both equities and direct property and fund of funds are excluded – is the £603.4m Scot Wid HIFML UK Property fund, run by Nick Ireland. It has generated a return of 51.5 per cent in the past five years.
However, its yield is only approximately 3 per cent, which is low for a property fund, so those looking mainly for income may want to look at the Threadneedle UK Property fund, run by Don Jordison, which is yielding 4.8 per cent, or the Henderson UK Property fund, run by Marcus Langlands Pearse and Ainslie McLennan, which is generating a yield of 4.2 per cent, according to FE Analytics.
Matthew Jeynes is senior reporter at Investment Adviser
Property: expert picks
Stephen Peters, head of collectives research at Charles Stanley, has tipped bricks and mortar property funds to deliver returns of around 9 or 10 per cent in the coming years, from a combination of both income and capital gains.
He has been buying into two open-ended property funds in particular in recent months, Don Jordison’s £447m Threadneedle UK Property fund and the £2.6bn Swip Property Trust, run by Gerry Ferguson.
