• The trust aims to deliver an attractive level of income together with the potential for income and capital growth from investment in a diversified UK commercial property portfolio. It offers investors prime exposure to commercial property assets.

  • How to Invest

    Open an F&C Savings Plan:

    Call: 0800 136 420

    Invest online now

    Or contact your usual investment broker

Key facts

  • Key points

    This trust offers exposure to a diverse portfolio of UK commercial property and a high level of income is paid quarterly. Investors can gain exposure to an asset class that is usually not accessible, via a readily realisable vehicle.

    Fund facts
    Investment manager F&C Investment Business Limited
    Launch date 1 June 2004
    Total assets £328.90 million (as at 31.03.15)
    Currency Sterling
    ISIN GB00B012T521
    SEDOL B012T52
    Key dates
    Annual general meeting  
    Year end 30 June
    Dividend payment date(s) March, June, September and December
  • Fund manager commentary

    The UK commercial property market delivered a benchmark total return of 3.5% in the last quarter and 15.7% in the year to June 2015, as measured by the Investment Property Databank (“IPD”) all Quarterly and Monthly Funds Index for all-property.

    The UK economy continued to deliver positive growth, with recovery broadening to the regions and employment reaching new highs. The Bank of England kept interest rates unchanged throughout the year and ten-year gilt yields remained low, finishing the period at 2.1%.

    Overseas buyers and UK institutions were the main purchasers of property during the period. Prime remained in favour but investors also looked to the regions and more secondary stock in an effort to secure assets and yield. The strong competition for stock fed through to further yield compression for property, aided by an ultra-low risk-free rate during the year. IPD data showed initial yields at the all-property level moving in by 40 basis points to 5.0% in the year to June.

    Over the quarter, the Company’s property portfolio witnessed strong performance with an ungeared return of 3.9% over the period and 16.7%, over the 12 months to June. The major driver of this strong return was capital growth and as at 30 June 2015 the value of the property portfolio had increased to £337.5 million, after sales and purchases.

    Industrial and Distribution delivered the highest returns of 5.6% over the quarter and 22.8% over the year. The largest individual contribution to returns came from Units 1-2 Network, Eastern Road, Bracknell following the reletting of one of the units on a ten year term, without break, at a new rental level of £367,300 pa, which equates to £10.50 per square foot, some 19% higher than the previous passing rent. In addition, Lakeside Industrial Estate, Colnbrook, a multi-let industrial estate consisting of 8 units close to Heathrow Airport and M25 and M4 motorways, returned

    24% over the year as a result of the estate being fully let for the first time in several years, and with rental levels approaching their peak last seen in the previous cycle.

    The retail sector outperformed its sector benchmark returning 3.4% over the quarter. However, the Company’s retail warehouse portfolio performed extremely well returning 4.0% over the quarter and 16.3% over the year.

    The Company also acquired, an office building, Park View House, The Ropewalk, Nottingham, for £3.25 million, reflecting a net initial yield of 7.1%. The building extending to 16,000 square feet on three floors with car parking, had been recently refurbished to a high standard and was let on ten year terms without breaks, to Gateleys, Mazzars and AIB.

    With an improvement in the occupational demand for property, the Company has achieved a good success rate in new lettings and lease renewals. Over the last year a number of vacant units have been let. These include the key industrial lettings in Bracknell and Colnbrook and a refurbished floor in 14 Berkeley Street, let for five years at a new rental equating to £92.25 per square foot. At 30 June, the vacancy rate across the portfolio was down to 3.3%, of rental value.

    New property acquisitions and regearings of leases to protect and enhance income streams and add value to the portfolio have resulted in an average weighted unexpired lease term of 7.7 years (to include breaks where appropriate).

    As at 31 August 2015

  • The value of shares and the income from them is not guaranteed and can fall as well as rise due to stock market movements. Past performance is not a guide to future performance. When you sell your shares, you might get back less than you originally invested. If markets fall, gearing can magnify the negative impact on performance. A fund investing in a specific country carries a greater risk than a fund diversified across a range of countries. The value of property related securities are likely to reflect valuations determined by professional valuers. Such valuations are the opinion of valuers at a particular point in time and are likely to be revised. Property and property related assets can sometimes be illiquid.

  • Ian McBryde

    Ian McBryde

    Fund Manager

Past performance is not a guide to future results. The value of investments can go down as well as up.

Information in this section of the Website is directed solely at persons who are located in the UK and can be categorised as retail clients. Nothing on this website is, or is intended to be, an offer, advice, or an invitation, to buy or sell any investments. Please read our full terms and conditions before proceeding further with any investment product referred to on this website. This website is not suitable for everyone, and if you are at all unsure whether an investment product referenced on this website will meet your individual needs, please seek advice before proceeding further with such product.


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