We have long held the view that property, despite its inherent illiquidity, should be a core asset class for any long-term investor, most notably pension investors. While capital values will fluctuate to a degree with market cycles, an income producing property portfolio should deliver an attractive return over time.
INDIRECT OR DIRECT PROPERTY INVESTMENT?
There is a very wide range of options for achieving property exposure within an investment or pension portfolio. Indirect Investment in property through Funds and REITS can offer investors the following advantages.
Advantages of Liquid Property Strategy vs Direct Property Investment
1. Portfolio Diversification
Acquiring a broad internationally diversified exposure to property in your portfolio has clear advantages over direct property investment as it spreads risk and provides geographic and sectoral diversification.
2. Management Challenges
Investing in property by way of pooled funds avoids all of the management headaches that invariably come with direct property investment.
Superior rental yield is often cited as a reason to opt for direct investment over funds. However, net yields currently available from many property funds are comparable with those achievable from direct property.
As the name suggests, liquidity is one of the foremost advantages offered by the Liquid Property Strategy. Liquidity is available on a daily basis for quoted Funds/ REITS.
To find out more about the Harvest Liquid Property Strategy and to determine if it is suitable and appropriate for your portfolio please speak to your Client Advisor, call us on 01 237 5500 or email firstname.lastname@example.org
This marketing information has been provided for discussion purposes only. It is not advice, it is provided for general information purposes only and does not fully take into account your financial position, investment needs and objectives, attitude to risk, liquidity needs, capital security needs, capacity for loss, etc. It should therefore not be relied upon to make investment decisions. Prior to any formal investments taking place you will be provided with a detailed suitability letter taking into account all the above and outlining why the investment(s) are (not) suitable for you.
Warnings: The figures refer to the past. Past performance is not a reliable indicator of future results. The value of investment(s) in the selected fund(s) may go down as well as up. If you invest in the selected fund(s) you may lose some or all of the money you invest. Past performance is not a reliable guide to future performance. Income may fluctuate in accordance with market conditions & taxation arrangements.