New Star: UK commercial property in FTSE APCIMS indices

Commenting on APCIMS announcement to include UK commercial property for the first time in its FTSE APCIMS indices Richard Wilson, New Star UK Retail Marketing Director, says: “The decision by the APCIMS Private Investor Indices committee to include an allocation to UK commercial property for the first time is further evidence of the emergence of commercial property as a mainstream asset class for private investors. The 5% property weighting for each of the Income, Growth and Balanced portfolio indices does, however, seem low compared to recommended weightings from many advisers for a moderate risk client. The APCIMS allocations also overlook the additional diversification benefits now available through international direct commercial property. Feedback from advisers who attended the New Star International Property Fund launch conferences showed that almost 40% of advisers would recommend a weighting of at least 10% to international “bricks and mortar” commercial property for a moderate risk investor.”