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Commercial Property Investment in the UK
This fund is managed by Morley Fund Management, a wholly owned independently managed institutional asset management
business of CGNU plc.
Morley is the second largest property fund manager in the UK, with over stg£8bn of property assets under management. It operates
with specialists in all sectors of the market, supported by a large strategy and research team.
The Hibernian UK Property Fund which invests in the Norwich Union Property Trust was established in 1991, and is the largest
authorised property trust in the UK.
Morley Fund Management's Property Strategy in Ireland
The Hibernian UK Property Fund will always have the majority of its assets invested in the direct property market which is lower
risk and less volatile than property shares. However in the manager's opinion, there is better value in certain property company
stocks than in some parts ot the direct property market at the moment.
Looking forward, the fund will selectively invest in the direct property market but will also seek to purchase shares in those property
companies which offer value over the medium to long term. The fund is required by legislation to keep at least 20% of its assets in
shares/gilts/cash to ensure liquidity.
Commentary and Outlook
The UK property market is currently experiencing two distinct trends, with offices and industrial investments in the South East
performing strongly, whilst most provincial offices, the retail sector (particularly high street retail), and provincial industrials are
experiencing weaker returns. Overall, property in the UK continues to provide a high income return and a realistic valuation base,
making it an attractive defensive investment.
We are anticipating an overall total return from UK property of around 10% per annum over the next 3 years. The property company
share sector should perform broadly in line with the direct property market, but he subject to much greater volatility.
List of some properties held
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Life Insurance
