Fidelity International has warned that despite the introduction of UK Real Estate Investment Trusts ...
Fidelity International has warned that despite the introduction of UK Real Estate Investment Trusts (Reits), it could take many years before the market is fully established and investors are able to benefit fully.
Peter Hicks, head of IFA business at Fidelity International, said: "With only a small number available, investors are not going to achieve the right level of diversification simply by focusing on the UK. Although the introduction of Reits in the UK is positive, the structures are a global phenomenon and investors can not only benefit from investing in the UK but also around the world."
Since the Government introduced regulations in January, only nine UK companies have converted to Reits. These include British Land, Hammerson, Land Securities and Liberty International. Seven firms have indicated they plan to convert in 2007.
Fidelity said the structure of a Reit differs from country to country and it has taken 30 years for the US and Australian market to mature.
The US now has a universe of 138 listed Reits, while there are 26 listed property companies in Australia. key points
Nine companies have converted to UK Reits
Fidelity warning not enough diversity in UK market
Investors should also look to other markets
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