F&C Asset Management, the UK fund manager, has reported a surge in results from its three listed commercial property trusts. The F&C Comm...

F&C Asset Management, the UK fund manager, has reported a surge in results from its three listed commercial property trusts. The F&C Commercial Property Trust, which was launched on 18 March 2005, saw its net asset value per share increase 21.1 per cent by 31 December 2005 with an annualised dividend yield of 5.1 per cent. The net asset value per share total return for the period was 22.9 per cent which compares to a return of 16.6 per cent from the Investment Property Databank Monthly Index over the same period. The ISIS Property Trust saw a net asset value per share increase of 18.6 per cent over the year ended 31 December 2005 and a dividend yield of 5.1 per cent. Shareholders were provided with a net asset value total return of 25.4 per cent during 2005. The ISIS Property Trust 2 saw its net asset value per share increase by 13 per cent, with a dividend yield of 5.2 per cent for the period 1 July 2005 to 31 December 2005. Paul Herrington, managing director, F&C property asset management,told WealthBriefing: "The HNW sector has been very attracted to property, either through investment vehicles or via direct acquisitions. People tend to feel secure with property because they have the security of the asset. "The advantage of closed-end vehicles is that unlike the open-ended funds which are currently being heavily marketed they do not have to hold significant exposure to cash, bonds or property related shares in order to meet potential redemptions." During 2005 the commercial property market saw rental growth in all of the main property sectors. There was a convergence in performance by sector with retail retaining top place with a 19.3 per cent total return, offices continuing their recovery with a return of 18.4 per cent and industrials returning 18.2 per cent. The property market received a boost in March 2005 when the UK Government announced it had decided against introducing legislation banning upward-only rent reviews.