New Star concern over 'volatile' property share funds

Since commercial property funds became eligible for ISA investment at the end of 2005, it has become a mainstream asset class alongside equities and bonds, but New Star is expressing concerns investors may not realise many of the recently launched property funds do not include physical property. It says there are two main types of property funds, those which hold physical properties and those which hold property company shares or real estate investment trusts (Reits). And New Star claims funds which hold property company shares rather than bricks and mortar, are likely to be more volati...