Fact sheet: F&C Commercial Property IT

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
PROPERTY
Sector
IT Property Direct - UK
Fund type
Investment Trust
Primary aim
GROWTH & INCOME
Why Money Observer Rates F&C Commercial Property IT

Rated Fund 2013, 2017. A reliable source of monthly income

This trust is the largest in the direct property investment trust sector at £1.37 billion, and has one of the most experienced management teams, led by Richard Kirby. It has a strong performance record, having outperformed the UK property market in virtually every year since it was launched in 2005.

It is attractive for income investors with an annual yield of over 4 per cent, paid monthly. It has revenue reserves equal to 2.46 years of the previous year's total dividend. The quality and diversity of properties in the trust's portfolio should stand it in good stead in current market conditions.

The trust's investment policy contains various limits on how the portfolio is managed, which help to maintain diversification and reduce risk.

For example, no single property can account for more than 15 per cent of gross assets at the time of acquisition, and the largest five properties must be no more than 40 per cent of gross assets. There are also limits on the proportion of the portfolio in different sectors such as offices, retail and industrial property.

Last year the trust held 36 properties located throughout the country. Though it is overweight central London, with a long-term, prestigious holding in the West End, it has limited exposure to City of London offices which are seen as most vulnerable to the impact of Brexit. The make-up of its tenants, its lease profile and its relatively low level of gearing are all seen as plus points for this trust.

3 Year Performance
Fund Performance11.5%
Average of Rated Funds Group23.1%
Sector Performance20%
Fund information
Fund name
F&C Commercial Property
Fund manager company
F&C (BMO Global Asset Manageme
Fund type
Investment Trust
Fund manager
  • Richard Kirbysince 18/03/2005
Accolades
Fund objective
To provide ordinary shareholders with an attractive level of income with the potential for capital and income growth from investing in a diversified UK commercial property portfolio.
Benchmark
  • No Specified Index
Investment style
None
Investment method
Physical
Quick stats
1 Year return
8.7%
1 Year rank in sector
8/11
Sector
IT Property Direct - UK
Yield
4.2%
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
0.96%
Fund size
£1,138m
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
95
Mid price
142.4
NAV
?Net asset value. The NAV per share may be higher or lower than the share price, which in turn is trading at either a discount or a premium to NAV.
141.2
Discount/Premium
?When the market price of an investment trust’s shares is less than the net asset value (NAV) per share then it is trading at a discount to NAV. A trust’s shares are on a premium when they trade at a higher price than the NAV.
+0.85
Gearing
?Investment trusts have the ability to borrow money which they invest with the aim of generating a higher return than the cost of the loan. An ungeared trust has a figure of 100. A figure of 110 would represent a trust with 10% gearing.
100
Top in this sector
Fund name1 Year
Aew UK REIT PLC Ord GBP0.0112.6%
Schroder REIT12.2%
Stand Life Inv Prop Inc Tst12.1%
Picton Prop Inc Ltd12%
Uk Comm Prop10.4%
...more in IT Property Direct - UK

Performance snapshot

Holdings snapshot

  • London35%
    South East UK26%
    Midlands12.9%
    Scotland12.1%
    North West UK10.7%
  • Offices - Property34.6%
    Retail29.6%
    Industrials17%
    Warehouse - Property16%
    Others2.8%
  • Property100%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund1.2%0.3%-2.5%8.7%11.5%73.4%
Sector-1.1%1.6%1.7%8.9%20%84.3%
Rank within sector1 / 1311 / 1313 / 138 / 119 / 95 / 6
Quartile1st4th4th3rd4th4th
Calendar performance
 YTD - 20182017201620152014
Fund5.5%3.9%6.4%2.8%18.8%
Sector0.9%8.9%5.2%7.8%16.5%
Rank within sector1 / 1310 / 114 / 117 / 96 / 6
Quartile1st4th2nd4th4th
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
-4.91
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
1.62
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
0.15
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
14.3
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
10.37
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
-0.13
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.54
Price movement
52 week high151.8
52 week low134.5
Current bid price141.8
Current offer price142
Current mid price142.4
Region
1London35%
2South East UK26%
3Midlands12.9%
4Scotland12.1%
5North West UK10.7%
6Eastern UK2%
7Outer London1.3%
Industry sector
1Offices - Property34.6%
2Retail29.6%
3Industrials17%
4Warehouse - Property16%
5Others2.8%
Asset type
1Property100%
Individual holdings
No data available.
Management
Fund manager group
F&C
Fund manager company
F&C (BMO Global Asset Manageme
Fund type
Investment Trust
Fund objective
To provide ordinary shareholders with an attractive level of income with the potential for capital and income growth from investing in a diversified UK commercial property portfolio.
Benchmark
  • No Specified Index
Investment style
None
Investment method
Physical
Fund manager
NameSinceBiography
Richard Kirby18/03/2005Richard Kirby, BSc, MRICS, aged 37, is a director of F&C Property Asset Management and is responsible for managing the property portfolio of FPWP.He has a degree in estate management and has worked for F&C PropertyAsset Management for over 14 years. He has been a fund manager since 1995 and has experience of running a number of property portfolios. He is a member of the British Council for Shopping Centres.
Compliance
AIC Member, Offshore
Domicile
No data available.
Fund for sale in
United Kingdom, Guernsey, Offshore
F&C Commercial Property
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price141.2
CurrencyGBX
Price updated31/12/2017
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeNN9P
Data provided by

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You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.