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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 47
Regions Covered Regions Covered 1
Fund Size €537m*
Latest Bid Price €13.9598 
Price Date 22/05/2018 

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. Investors should take a medium to long term view if investing in the fund.

Market Commentary
The Market:

The Irish economy continues to perform very well, with GDP growth coming in at 7.8% for 2017. The forecast for 2018 is 4.8%, the fastest pace in Europe. Unemployment is now 6.0%, much lower than the European average of 8.5%. Expanding employment, wage growth, tax cuts, weak Consumer Price Index inflation are boosting real income and driving the domestic economy.

These macro-economic indicators make Ireland an attractive destination for international investors' capital. Recent stamp duty changes have had no reportable impact on the market. Transaction volumes reached €930m for Q1 2018, a very robust start to the year. 63% was from international investors, 74% was invested in Dublin and 53% was deployed in the office sector (JLL).

In terms of prime income yields, Ireland continues to look attractive relative to our European counterparts. Prime yields remained stable across the retail (3.2%), office (4%) and industrial (5.5%) sectors (Lisney). Prime retail rents continue to rise. Prime office rents are beginning to stabilise, but at levels ahead of the previous peak. Take-up continues to be very strong, particularly in the office and prime retail sectors. While 2017 saw a new record being set in Dublin office take-up, Q1 2018 is up 69% on the same period last year. 47% of Q1 take up was by Irish firms, 27% by U.S. and 12% by our UK neighbours. Demand is also very strong for logistics space, but there is a continued shortage of supply of larger, modern boxes.

The Fund:

The Fund's income profile continues to be very attractive, at a level of 5% and a WALT of almost eight years. The top 10 tenants account for almost 60% of the rental income. These tenants are of exceptionally high standard and underpin the Fund's income stream.

The 12 month rolling performance (5.52%) has been somewhat muted. The main "drag" on the performance has been the three Blackrock properties which are beginning their redevelopment cycles and costs such as planning permission, design, architects fees etc have been incurred. We expect that the redevelopment of these properties will add value to the Fund over the coming months and years.

We continue to source and analyse investment opportunities for the Fund. There have been a number of positive lease negotiations across both the Clarendon Collection and the Merrion Portfolio. The demolition of Enterprise House in Blackrock is underway, and upgrade works on the Shopping Centre and Trident House are due to commence shortly. The anchor restaurant for Royal Hibernian Way is close to completion.

For further information on the Fund, see the Quarterly Report. (31st March 2018)

Additional Information

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

Sector Breakdown as at 31/03/2018

Unexpired Lease Duration as at 31/03/2018

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.

The funds referred to on this page may be linked to an insurance-based investment product and the Key Information Document (KID) for this product is available at www.friendsfirst.ie/kids. The Risk Ratings of the funds referred to in this document differ from the corresponding Summary Risk Indicators shown in the KID. An explanation of the differences between the Risk Rating and the Summary Risk Indicator is available at the location above.

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

The funds referred to on this page may be linked to an insurance-based investment product and the Key Information Document (KID) for this product is available at www.friendsfirst.ie/kids. The Risk Ratings of the funds referred to in this document differ from the corresponding Summary Risk Indicators shown in the KID. An explanation of the differences between the Risk Rating and the Summary Risk Indicator is available at the location above.

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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