Standard Life has introduced a new property fund, which will allow Irish investors to put money into commercial property in the UK. The average return on UK commercial property since 1971 has been 12.4 per cent per annum. Standard Life says the tradition of long leases in the UK property market has generated secure income flows for investors, making the return from that market more stable than from other property markets.
To protect Irish investors against any currency risk, the fund manager will use currency hedging when he considers there is a risk of an adverse movement in sterling against the euro.
The fund is available under Standard Life's Prosperity Bond which carries no up-front charges. A charge is applied on the surrender of the bond within the first five years. In addition, the charge for managing the fund is 1.95 per cent per annum which is incorporated into the unit pricing. The minimum investment is £7,500.
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