figures show sector has performed well over past decade
Property is proving to be one of the most consistent and best performing unit and investment trust sectors over the past 10 years.
Standard & Poor's figures to the start of June this year show the property unit trust sector is ranked top out of 30 over five years, turning £1,000 into £1,523.80 after charges. Over three years it is ranked second with £1,288.05, behind index bear at £1,401.89.
On a 10-year view, property still appears to be an attractive option, ranked nine out of 28, with £2,890.26. This puts it some way behind the best performer, North American Smaller Companies, which would have turned £1,000 into £4,370.70.
Unsurprisingly, given the poor condition of equity markets over the past two years, the property sector has maintained a high ranking against other sectors over shorter time periods.
It is ranked three out of 30 over one year, turning £1,000 into £1,022.28, coming in behind index bear with £1,059.28 and money market at £1,026.85. On a six-month view it is ranked four with £1,048.62, behind global emerging markets, Far East ex Japan and Far East Including Japan. Of these the best performer, global emerging markets, turned £1,000 into £1,114.06 after charges.
While the unit trust property sector has produced positive returns for each of these time periods, it has not managed that over one month. During May 2002 it turned £1,000 into £964.41 after charges, ranking it nine out of 30.
Only two sectors produced positive returns for this time period, Japan, which managed £1,018.30, and Japanese Smaller Companies, with £1,026.39.
The asset class has also held up well when the average mid to mid share price returns of the investment trust property sector are looked at.
On a 10 year view to 1 June 2002, the sector has turned £1,000 into £3,042.55, a far higher return than that available via unit trusts over the same period, ranking it seven out of 24 sectors. Over the medium term its returns also look impressive when compared with its unit trust counterpart. On a five-year view the sector average is £1,538.20, ranking it 10 out of 38 investment trust sectors.
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