Friends First Home
compare funds  Send Link as email  Download PDF
UK Select Property Life Fund
Fund Snapshot
Launch Date 30/06/2006
Fund Manager Friends First
Risk Rating Risk Rating 5
Fund Type Asset Class Property Property
Diversification Diversification 1
Stocks & Holdings 6
Regions Covered Regions Covered 1
Fund Size €35.4m*
Latest Bid Price €1.0673 
Price Date 22/05/2018 

Fund Performance

Performance Line Graph

From   To expand graph

Fund Summary
It is the intention of this fund to invest into direct real estate assets however the fund is also permitted to invest in indirect property investments such as Public Securities, Government Securities, Derivatives, Units/Shares in Collective Investment Schemes and joint venture arrangements geared towards a specific real estate investment plan. Leveraging shall not exceed 40% of the funds Gross Asset Value at the time of drawdown. The fund can only invest in properties located within Great Britain or indirect property investments where the core underlying investment is GB real estate related. The fund will not invest in speculative development. When a fund is leveraged it means that gains and losses will be multiplied.

Market Commentary
The Market:

Most commentators are forecasting subdued UK Economic growth of 1.5% for 2018. This is slower than the rest of Europe due to uncertainty regarding Brexit. Economic fundamentals however have remained positive, with unemployment currently at 4.2%, the lowest rate in the UK since 1975. UK Commercial Property Markets remain resilient with capital values increasing by 0.9% across the UK in Q1 2018 and rental values up by 0.5%. As in 2017 the industrial sector accounted for much of this growth. Retail capital growth fell marginally at -0.4% as household spending remains restrained. The office sector recorded capital growth of 0.4% and rental values increased by 0.2%. The Central London office market saw a second month of positive rental growth after 10 months of negative or flat changes (CBRE).

2017 saw strong inflows of equity from overseas (almost half of investment volumes) particularly Asian investors in the capital. The UK now offers attractive yields compared to Europe. The majority of Brexit threatened moves to other EU countries have not yet been implemented. An FX gain of 1.2% GBP vs Euro was experienced in Q1 2018 and the pound is likely to strengthen further during the year with at least one interest rate rise predicted.

The Fund:

The Fund returned 3.24% (Life) over Q1 2018 as a result of three main drivers. Firstly, a positive revaluation movement in the Victoria House office property in Belfast of 3.4% (which represents 1.2% growth at the portfolio level). This was as a result of one tenant not exercising their break option, coupled with an increase in market rents of £0.50 psf. Secondly, the portfolio has a strong income yield of 6.7% which is captured in the total return figure. Finally, there was an FX gain of 1.2% over the quarter. The weighted average lease term is just over six years, with 73% of income in place for over five years.

The values of the other three properties remained stable despite the continued uncertainty in the UK. As noted previously, the fund now has a holding in a UK REIT. 4.5% of the Fund NAV is invested in the Assura PLC REIT. This REIT invests in primary healthcare centers in the UK, with over 90% of the rental income backed by the National Health Service (NHS). We believe that the liquid nature of this investment, coupled with the quality of the underlying income, is an appropriate fit for the Fund.The remaining direct properties in the Fund include both core and "core +" properties let on high quality leases. The B&Q warehouse in Scotland has over eight years unexpired income, and the industrial unit let to Downhole in Aberdeen has almost 11 years left on the lease. The Fund also invests in value-add properties, where we aim to unlock embedded value through active management. An example of this is Victoria House in Belfast which is multi let and includes tenants such as Arthur Cox, Oracle and AON.

(31st March 2018)

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

Properties as at 31/03/2018

Properties Tenants
Badentoy, Aberdeen Downhole prods (Industrial)
Crieff Road, Perth B&Q plc (Retail Warehouse)
Edinburgh Park JLT Mgmt Services (Offices)
Victoria House 15-17 Gloucester St Belfast Oracle, Arthur Cox, AON Mc Millen, Zurich & oth (Office)

Unexpired Lease Duration as at 31/03/2018

Sector Breakdown 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. Should the fund become leveraged, this will result in leveraged/geared returns which will mean that gains and losses will be multiplied. 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: 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.



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
Fund Description Performance


From     To

expand graph     Add/Remove Fund

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 (%)
Banner Banner

 

© Friends First, Friends First House, Cherrywood Business Park, Loughlinstown, Dublin 18
Friends First Life Assurance Company dac is regulated by the Central Bank of Ireland.
Friends First is part of Achmea