Property provides income without risk increase

NU's fund has switched a proportion of its investment in UK corporate bonds to increase its exposure to property. The idea behind the switch is to increase the income generated without increasing the risk. The fund is now 40% invested in UK equity income, 32% (down from 40%) in UK corporate bonds and 28% in property (up from 20%). "We believe the prospects for the sector remain bright," says Neil Davies, head of investment product development at Norwich Union, "Our view is a well-diversified distribution fund should currently have about a third of its assets in commercial property." ...