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News from the Residential Property Investor, the bi-monthly magazine for RLA members
other artilces from the July / August 2005 issue |
Knight Frank extends funds range - July / August 2005
KNIGHT FRANK Investment Management it to launch a series of property funds in 2005 aimed at high net worth and SIPP investors.
Knight Frank has historically managed commercial investment portfolios for institutional clients and this is the first time that it has broadened its service to private clients.
The first investment fund, which is being launched in association with the Antler Group, has been designed to be conservative in its approach by providing an attractive income return together with good prospects for capital growth. In this fund it is intended that clients will protect their wealth rather than speculate with it.
Knight Frank say that commercial property is likely to continue its strong performance.
Robert Hannington, joint head of investments, said: "Demand for property shows no sign of abating in 2005 with a broad range of investors seeking to allocate assets to the sector. The latest data for the 12 months to March 2005 shows that property has achieved a total return of 18 per cent compared to 15.6 per cent for equities and 5.1 per cent for gilts.
"We believe that commercial property still offers a very attractive yield premium over both equities and gilts.
"The recent strong performance of property has been the result of a correction in investment markets, and we consider that property yields still look attractive to long-term investors in the low inflation, low interest rate environment that has now become established."
The new fund requires a minimum investment of £25,000.
other artilces from the May / June 2005 issue