The AIC IT Property Securities sector notched up an impressive 21.46 per cent in 2014 against the IA Property sector average return of just 13.12 per cent. The AIC IT Property Direct UK and the AIC IT Infrastructure sectors both outperformed their open-ended property counterparts with average total returns of 16.47 per cent and 14.59 per cent respectively.
But while the Property Specialist and Infrastructure sectors were represented in the top-10 best performing trusts in the form of VinaCapital’s Vinaland and Vietnam Infrastructure, other alternative options such as private equity also appeared, with the NB Private Equity Partners trust delivering a strong return of 33.48 per cent.
It is not surprising that the three-largest launches in 2014 were in the alternatives sector, with the Kennedy Wilson Europe Real Estate (Property Direct – Europe) raising £910m in February, making it the fourth-highest new issue of the past 10 years, according to the AIC.
The strong performance of these sectors, combined with the advantages inherent in a closed-ended structure in terms of liquidity and gearing, suggest this will remain a focus for investors. The question will be whether these trends will last in the face of continued macroeconomic uncertainty around the globe.
Nyree Stewart is features editor at Investment Adviser
