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Property
Fund Snapshot
Launch Date 01/01/1984
Fund Manager Friends First
Risk Rating Risk Rating 5
Fund Type Asset Class Property Property
Diversification Diversification 2
Stocks & Holdings 46
Regions Covered Regions Covered 1
Fund Size €509m*
Latest Bid Price €13.5955 
Price Date 20/11/2017 

Fund Performance

Performance Line Graph

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Fund Summary
The Property Fund invests in a range of Irish properties across the retail, office and industrial sectors. The Fund only invests in direct Irish property, and does not invest in the UK or in indirect investments such as REITs. The Fund is designed for longer term investment with returns generated through capital growth and rental income. Property assets can be illiquid and can generate negative returns if capital prices fall. The benchmark for this fund is the average return achieved in the IPD Quarterly Irish Property Index.

Market Commentary
The Market:

Ireland is the best performing Eurozone economy for 3 consecutive years, with 2017 expected to be the fourth. Unemployment is 6.1% (the lowest in 9 years) and GDP growth forecast is c.4.5% for 2017. These excellent macro indicators provide a positive backdrop for the Irish property market. Following an exceptionally strong trading year in 2016, the level of investment is returning to a more normal level. €1.3bn of commercial property deals completed year to date, with Q4 expected to be an active quarter as a result of some large investments which have launched to market.

Investment continues from a combination of domestic and overseas buyers, including a recent increase of investors from Europe. International investors tend to favour larger lot sizes, which have been scarce so far this year. It is expected that some of the new developments which are under construction at present may be placed on the market when near completion and partially or fully pre-let.

The Fund:

Q3 was an active time for the Fund. A large industrial asset let to Valeo Foods (Jersey) Ltd was acquired on a long lease and an initial yield of c.5.75%. An office property let to Cisco, in Oranmore, Galway was also acquired, at a very attractive initial yield of over 9%. Most recently, the Merrion Collection (4 retail assets on Merrion Row in Dublin 2) was acquired at a yield of c.5%. This is an exciting investment with a medium term, value add strategy.

Works are due to commence on the Royal Hibernian Way retail mall in Q4, and terms are being finalised with the preferred tenant for the larger restaurant unit. It is expected that both new restaurant units will be pre-let prior to commencing the works. Similarly, the redevelopment of the Blackrock properties is progressing, with preliminary works on Enterprise House due to begin in Q4. Planning was granted during Q3 for the exciting upgrade of the shopping centre, with "back of house" works already underway.

The performance YTD has been somewhat muted by the redevelopment projects, as capital values have fallen due to tenants vacating in preparation for the works to commence on site. In addition, some capital expenditure accruals have been accounted for in the Fund's value. Friends First will progress significant asset management initiatives to deliver capital value improvements on existing assets over the coming 3 years. Investors should take a medium to long term view if investing in the Fund in order to experience the outcome of the larger redevelopment projects.

The Fund's income profile continues to be very attractive, with a strong initial income yield at the property level of 5.3% and a weighted average lease term of 8 years 3 months. The top 10 tenants (by rental level) account for c.60% of the rental income. These tenants are of exceptionally high standard and underpin the quality of the Fund's income stream. (30 Sept 2017)

Additional Information

Management Charge
0.75% pa of fund assets. Please refer to policy conditions for policy charges.

Sector Breakdown as at 30/09/2017

Unexpired Lease Duration as at 30/09/2017

This fund should be considered as being a medium-long term investment. Access to your investment in this fund may in periods of adverse investment conditions be restricted for up to six months. Asset Information source: Friends First, unless otherwise stated. Performance figures are as per 'price date'. * Fund size refers to assets under management in underlying fund.

The returns shown include the reinvestment of net income and are net of trading costs and management fees but before other insurance contract charges and as such do not represent the returns on insurance contracts linked to these funds. Details of all charges for a particular product are available on request.

The information in this document does not constitute investment advice. It does not take into account the investment objectives, financial position or needs of any particular investor. Before making an investment decision, you should consult suitably qualified and independent investment, taxation, and regulatory advisors to discuss your specific situation and investment objectives. The investment strategies and risk profiles outlined in this document may not be suitable for your specific investment needs.

Warning: Past performance is not a reliable guide to future performance.
Warning: The value of your investment may go down as well as up.
Warning: If you invest in this product you may lose some or all of the money you invest.



The information provided is intended for use by retail investment customers and is based on our understanding of current law and revenue practice.
Selected Funds
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Fund Performance

Fund Performance To Date
Fund Description Fund 1 mth YTD 1YR 3YR p.a. 5YR p.a. 10YR p.a. Launch p.a

Warning: Past performance is not a reliable guide to future performance.
Warning: The value of your investment may go down as well as up.
Warning: Funds may be affected by changes in currency exchange rates.
Warning: If you invest in this product you may lose some or all of the money you invest.

FUND WARNINGS:
  1. Performance Fees: The growth of the Insight Currency fund will be subject to a 20% monthly performance fee which only applies when the growth rate exceeds 7% p.a. The Market Neutral Equity fund will be subject to a performance fee of 10% of any growth achieved above cash returns (specifically 3-month EURIBID).
  2. The price protection on the Protected Equity+ Fund, Series 3 is provided by Deutsche Bank AG.
  3. Money invested in the Deposit fund is placed with one or more Banks. The payment of interest and security of capital is provided by the Bank(s). The Bank(s) and not Friends First are providing the security on the Deposit fund. Please refer to the Fund Factsheet.
  4. The property fund managers reserve the right to place a withdrawal limit or/and to defer encashment for up to six months or such time as is necessary to facilitate the sale of assets if required.
Fund Performance

Daily Fund Prices and Performance
Fund Name Bid Price Price Date 1Mth (%) YTD (%) 1Yr (%) 3Yrs (%) 5Yrs (%) 10Yrs (%) Since Launch (%)

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