Building in a commercial element for diversification

property

Consultations in the property sector look set to alter the shape of the sector over the coming months and years but Morley Fund Management remains upbeat about its prospects

Morley Fund Management's Gerardine Davies believes that anyone searching for high and reliable levels of returns must consider introducing a commercial property element into their portfolio. "It provides a fairly consistent, solid income return," she says. "We look at commercial property as a diversifier within a mixed portfolio. Its characteristics include providing a high level of total return and much lower volatility when compared with equities and gilts." For Davies, who manages both the Norwich Property Trust and the Morley High Income Property Unit Trust, the arguments are compelli...