Property Investment Funds:

The historic performance of commercial property has very little
correlation with the performance of corporate bond or equity based investments. For investors looking to diversify their portfolio property
funds offer attractive historical returns with relatively strong 'defensive' qualities (i.e. low volatility).

 
Income into commercial property funds is often derived from
contractually binding contracts of rent paid by business tenants
to occupy properties held within the fund. Commercial leases
are often arranged over a long period and often include an
‘upwards only clause’ which ensures that rents are not negotiated
downwards during the lease period, even in times of falling markets. Commercial property tends therefore to offer a more stable return than, for example, dividends paid on equities.

Added to the rental incomes, property has the added attraction of appreciating in value over time, and although property values do fall, the 'bricks and mortar' assets of a fund remain.

However, returns from a property fund are not guaranteed and the value of any investment can fall as well as rise.