Property as Part of a Balanced Portfolio
Some charities believe that they should hold investments in property through listed property Trusts. However, listed property Trusts are traded on share markets, and are therefore highly correlated to equities which leads to higher levels of volatility.
We refer to Property as being direct commercial property investments, primarily unleveraged, high quality, freehold and leasehold commercial property with little or no development risk.
When commerical property investments are of good quality and with capital gain in line with inflation, direct property is a good asset class to include within a charity's balanced portfolio. It is an asset class that generates good, stable income returns.