Property still a good bet for the long haul

The strong performance run by commercial property has been attracting investors but they should realise the high total returns on offer are unlikely to continue, according to M&G. Property fund manager John Cartwright said the increasing use of commercial property in asset allocation as an essential part of portfolio construction has increased demand and pushed up the performance returns. Since mid-1998 the UK IPD Total Return Index, a proxy for property, has risen by almost 120%, against a gain of around 10% for the FTSE 100 and 35% for gilts and cash. Cartwright said: "In the long run, ...