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Property
Fund Snapshot
Launch Date 01/01/1984
Fund Manager Friends First
Risk Rating Risk Rating 5
Fund Type Asset Class Property Property
Diversification Diversification 2
Stocks & Holdings 50
Regions Covered Regions Covered 1
Fund Size €548.3m*
Latest Bid Price €14.1367 
Price Date 11/08/2020 

Fund Performance

Performance Line Graph

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Fund Summary
The Property Fund invests in a range of Irish properties mainly across the retail, office and industrial sectors. The Fund invests in direct Irish property, and currently does not invest in the UK or in indirect investments such as REITs. The Fund is designed for longer term investment with returns generated through rental income and capital value movements. Property assets can be illiquid and can generate negative returns if capital prices fall. Investors should take a medium to long term view if investing in the Fund.

Important Update 29/01/2020
Aviva Life & Pensions Ireland DAC (ALPI) has a responsibility to treat all policyholders fairly and equitably. Due to recent net outflows from the Friends First Irish Commercial Property Fund, we have taken the decision to move our property fund pricing from an acquisition to disposal basis. This impacts redemption requests received after close of business on Friday 24 January 2020, which is in line with company policy. The impact of the switch in pricing basis is -9.1%. Please see the explanation here to understand more about acquisition and disposal pricing.

Due to recent net outflows from the Friends First Irish Commercial Property Fund, we have taken the decision to temporarily suspend redemptions, including surrenders, and switches, where the request was received after close of business 30th January 2020. If you reach your normal retirement age or you are currently taking a regular withdrawal during this moratorium you will have access to your retirement benefits and current regular withdrawal (at the existing amount) as normal.

Market Commentary
The Market:

As Covid-19 continues to spread globally and in Ireland, the impact on the local economy is clearly visible. The main aspects of Irish commercial property impacted by the pandemic will be uncertainty surrounding valuations, rent collection and reduced transactional activity across investment and occupier markets. To date there has been a sudden and sharp impact on the Irish economy with the Central Bank estimating a GDP fall of -8.3% during 2020, and unemployment will have moved from 4.8% (effectively full employment) in February to an average of 14% for 2020. Despite unprecedented uncertainty towards the end of Q1, Irish commercial property markets experienced a strong quarter. Much of the office leasing activity for the quarter took place in the suburbs with technology and financial services companies dominating the take up of space. Of the main sectors, offices and logistics are holding up well. Prime office rents remain stable at €700 psm with prime industrial rents stable at €110 psm. Prime office and industrial yields remained unchanged during the quarter, at 4% and 5.2% respectively. In their market projections, Lisney moved out prime retail yields (bar grocery and pharmaceutical sectors) by 0.25% to reflect market sentiment to 3.75%.

The Fund:

Prior to the arrival of Covid-19, activity within the portfolio continued at a strong pace. Redevelopment works progressed at Blackrock Shopping Centre; works are currently suspended with only three months remaining. Letting of vacant units has commenced within the shopping centre, and two new leases were signed with existing tenants. Preparation for the Royal Hibernian Way upgrade, at 12 Duke Lane (office) creating additional office space, is well underway. Planning was summitted for redevelopment at Merrion Row, to construct a six- storey building of commercial space at ground floor and accommodation on the upper levels. We are at advanced stages of the sale of a property, with two further properties at earlier stages of disposal. The Fund is well positioned to navigate uncertainty, our top 10 tenants account for c.55% of rent, representing strong covenants. The retail component will be most impacted in the short term; however, a large portion of retail rent derives from two large grocery anchor stores, the most resilient of the retail subsectors at present. We are proactively engaging with tenants in order to encourage a return to trading after the lockdown is lifted. Sustainability and ESG remain a priority with a full ESG gap analysis underway. March 2020 valuations saw a -1.74% adjustment downwards, driven by an outward shift in the retail yields reflecting the Covid-19 pandemic. The Fund continues to be priced on a disposal basis and remains subject to a moratorium of up to six months. There is currently no debt within the Fund.

For further information on the Fund, see the Quarterly Report. [HYPERLINK]

(31st March 2020)

Additional Information

Management Charge
0.75% pa of the total value of the fund. Please refer to policy conditions for policy charges.

Sector Breakdown as at 31/03/2020

Unexpired Lease Duration as at 31/03/2020

This fund should be considered as being a medium-long term investment. Access to your investment in this fund may in periods of adverse investment conditions be restricted for up to six months. Asset Information source: Friends First, unless otherwise stated. Performance figures are as per 'price date'.

The returns shown include the reinvestment of net income and are net of trading costs and management fees but before other insurance contract charges and as such do not represent the returns on insurance contracts linked to these funds. Details of all charges for a particular product are available on request.

The information in this document does not constitute investment advice. It does not take into account the investment objectives, financial position or needs of any particular investor. Before making an investment decision, you should consult suitably qualified and independent investment, taxation, and regulatory advisors to discuss your specific situation and investment objectives. The investment strategies and risk profiles outlined in this document may not be suitable for your specific investment needs.

The funds referred to on this page may be linked to an insurance-based investment product and the Key Information Document (KID) for this product is available at www.friendsfirst.ie/kids. The Risk Ratings of the funds referred to in this document differ from the corresponding Summary Risk Indicators shown in the KID. An explanation of the differences between the Risk Rating and the Summary Risk Indicator is available at the location above.

Warning: Past performance is not a reliable guide to future performance.
Warning: The value of your investment may go down as well as up.
Warning: If you invest in this product you may lose some or all of the money you invest.



The information provided is intended for use by retail investment customers and is based on our understanding of current law and revenue practice.

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Fund Performance

Fund Performance To Date
Fund Description
Fund 1 mth
YTD
1YR
3YR p.a.
5YR p.a.
10YR p.a.
Launch p.a.

The funds referred to on this page may be linked to an insurance-based investment product and the Key Information Document (KID) for this product is available at www.friendsfirst.ie/kids. The Risk Ratings of the funds referred to in this document differ from the corresponding Summary Risk Indicators shown in the KID. An explanation of the differences between the Risk Rating and the Summary Risk Indicator is available at the location above.

Warning: Past performance is not a reliable guide to future performance.
Warning: The value of your investment may go down as well as up.
Warning: Funds may be affected by changes in currency exchange rates.
Warning: If you invest in this product you may lose some or all of the money you invest.

FUND WARNINGS:
  1. Performance Fees: The growth of the Insight Currency fund will be subject to a 20% monthly performance fee which only applies when the growth rate exceeds 7% p.a. The Market Neutral Equity fund will be subject to a performance fee of 10% of any growth achieved above cash returns (specifically 3-month EURIBID).
  2. The price protection on the Protected Equity+ Fund, Series 3 is provided by Deutsche Bank AG.
  3. Money invested in the Deposit fund is placed with one or more Banks. The payment of interest and security of capital is provided by the Bank(s). The Bank(s) and not Aviva are providing the security on the Deposit fund. Please refer to the Fund Factsheet.
  4. The property fund managers reserve the right to place a withdrawal limit or/and to defer encashment for up to six months or such time as is necessary to facilitate the sale of assets if required.
Fund Performance

Daily Fund Prices and Performance

Fund Name Bid Price Price Date 1Mth (%) YTD (%) 1Yr (%) 3Yrs (%) 5Yrs (%) 10Yrs (%) Since Launch (%)
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© Aviva Life & Pensions Ireland Designated Activity Company, a private company limited by shares.
Registered in Ireland No. 165970. Registered office at One Park Place, Hatch Street, Dublin 2, D02 E651.
Aviva Life & Pensions Ireland Designated Activity Company, trading as Aviva Life & Pensions Ireland and Friends First, is regulated by the Central Bank of Ireland.