Five of the best property funds for your portfolio

PROPERTY

Morningstar OBSR investment research analyst Muna Abu-Habsa scrutinises some of the best property funds on the market...

Polarisation in the valuations of prime and secondary property assets has dominated the returns of property funds so far into 2012. Central London safe havens remain in vogue and investments outside of these have been commanding a high and increasing risk premium. Although transaction volumes have fallen sharply, foreign investors have continued to focus on prime London properties. Given the limited supply of these, central London office and retail markets then continued to deliver robust rental growth. That being said, it is often challenging for retail property funds to get sufficie...