Commercial property door now wide open to smaller UK investors

Retail investors looking to boost their returns now have the option to invest in a low volatility commercial property fund through the Bespoke IPD UK Monthly Index Tracker Fund.

The Bespoke fund shadows the performance of the Investment Property Databank (IPD) Index, which comprises more than 3,800 retail, industrial and office properties from all over the UK valued at over £49 billion, and offers a high level of diversification for investors.

And, with a minimum investment of just £1,000, small investors can gain access to a fund class that has so far been only available to institutional investors.

“Because the Fund offers daily liquidity and wide diversification of underlying assets, it will prove very popular with investors seeking exposure to commercial property, without the fear of being locked into a fund if values fall in the future,” said Bespoke Partner Philip Gilbert.

Due to the ‘tracking’ nature of the fund, investors can access their funds even in difficult markets, as there is no need to sell the underlying properties.

“We wanted to design a fund that would guarantee efficient commercial property returns – and we have successfully achieved this goal with the IPD Index Tracker.

“Unlike traditional property funds, the IPD Tracker is pretty much 100% exposed to commercial property, with no cash holdings waiting to be invested,” added Gilbert.

The Fund, accessible through IFAs, is available for direct investment as well as via new ISAs and ISA/PEP transfers and is suitable for pension investments such as SIPPs and SSAS, and for investments via insurance bonds.

Income is paid half yearly as interest rather than as a dividend – so if investors do not pay tax or invest through an ISA, all of the tax deducted at source can potentially be reclaimed.