News Archive - July 2007
Commercial property investments
12/07/2007
Over the last couple of weeks, several insurance companies have
announced sudden cuts in the value of their commercial property funds.
These funds own property such as office buildings and shopping centres,
and their value is based on the value of the properties within them as
well as the rental income earned.
These funds have given very strong returns over the last few years, with
low volatility when compared with equity investments, so they have been
the 'flavour of the month' with many advisers. However, outflows of investments
from the funds (due to worries about the future returns from commercial
property) have forced the insurance companies to downgrade their valuations.
Does this mean that you should not invest in this type of fund? Well,
we believe that you should take a long-term view wherever possible, because
nobody can guarantee what will happen in the short-term. Without the benefit
of a crystal ball, it is a very risky strategy to continually chase the
one area which will give the best short-term returns.
Over the years, property funds have provided good long-term returns when
compared to cash. More importantly, their value does not vary directly
in line with the stock market, so they offer protection from equity market
falls.
A well-diversified portfolio with a range of non-correlating asset classes
is the best way to reduce risk over the long term. (In English, don't
put all your eggs in one basket!). There is still a place for commercial
property funds as a part of your pension and investment portfolio.
The material here is for general information only and is not intended to be relied upon for individual investment decisions. Appropriate independent advice should be obtained before making any such decisions. Mulberry Financial Ltd does not accept any liability for any loss suffered by any user as a result of any such decision.
The information is based on our understanding of current HMRC rules and practices (as at the news article date) which are always subject to change. Taxation and trust advice and Cash ISAs are not regulated by the Financial Conduct Authority. This site is aimed at UK residents only.
Please remember that the prices of shares and other investments can fall sharply. You may not get back the money you originally invested. Past performance is not necessarily a guide to the future.
News archive 2017
Mar | Feb | Jan |
News archive 2016
Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan |
News archive 2015
Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan |
News archive 2014
Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan |
News archive 2013
Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan |
News archive 2012
Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan |
News archive 2011
Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan |
News archive 2010
Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan |
News archive 2009
Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan |
News archive 2008
Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan |
News archive 2007
Dec | Nov | Oct | Sep | Aug | Jul | Jun | May |