F&C Commercial Property Trust (FCPT)
AIC sector: Property Direct – UK
Objective: To provide an attractive level of income with potential for capital and income growth through investing in a diversified UK commercial property portfolio.
Ongoing charge: 1.07%
This trust is the largest in the direct property investment trust sector and has one of the most experienced management teams, led by Richard Kirby. It has a strong performance record and is attractive for income investors with an annual yield of over 4%, paid monthly.
The trust’s investment policy contains various limits on how the portfolio is managed, which helps to maintain diversification and reduce risk.
For example, no single property can account for more than 15% of gross assets at the time of acquisition, and the largest five properties must be no more than 40% of gross assets. There are also limits on the proportion of the portfolio in different sectors such as offices, retail, and industrial property.
Though it is overweight in central London, it has limited exposure to City of London offices, which are seen as most vulnerable to the impact of Brexit.