The UK's Association of Private Client Investment Managers and Stockbrokers is changing the weightings of the FTSE APCIMS index to reflect the current downturn in commercial property investment.

The index is designed to compare the performance of income, growth and balanced funds; as a basis for reviewing the asset allocation and structure of a portfolio; and as a benchmark for assessing and comparing the performance of discretionary fund managers.

The changes will take effect on 19 January, reducing the property aspect of the body’s model portfolio by 2.5 per cent and reallocating it to bonds.

“We have observed for some time now a significant fall in the allocation made to commercial property amongst the private client investment management community. Portfolio managers have been moving portfolio allocations from property to bonds and gilts.

"This shift in allocation away from commercial property partly reflects the liquidity squeeze and the recession that is underway,” said Mike Lenhoff, chairman of the APCIMS Indices Committee, in a statement.

The APCIMS/FTSE index provides a benchmark for asset allocation over three model portfolios. Commercial property as an asset class was introduced in June 2007, along with hedge funds, to reflect the growing trend towards investing in alternative assets.

“This is the first time since it was first introduced in 2007 that the committee has responded to the changes APCIMS members are making to the weighting of commercial property in their asset allocation models,” said Mr Lenhoff.

The APCIMS represents over 140 firms across the UK who deal in stocks and shares on behalf of individuals and institutions.  The association says £400 billion (about $600 billion) of the UK's wealth is under the management of its members.

The body’s aim is to ensure that the regulatory, tax and other changes across Europe minimise impact on the investment community.

It also aims to encourage debate on regulation in Europe with UK regulators and with British parliamentarians to make sure consumers are protected and the industry flourishes in the UK.

The index incorporates returns from the FTSE All-Share Index, FTSE World ex-UK Index, FTSE Gilts All-Stocks Index, FTSE All UK Property Index, FTSE Hedge Index and cash on deposit.

The indices are managed according to a public set of index rules, and overseen by an independent committee of senior market professionals. The committee ensures that the rules are correctly applied and adhered to. Regular index reviews are conducted to ensure that a continuous and accurate representation of the market is maintained.