OMGB UK Property Fund

By Stephen Cranston

Who it's for: Investors looking for a fund that invests directly into a diversified range of UK properties (80% of the fund) as well as a range of property shares (20%). OMGB stands for Old Mutual Guernsey Branch. It is one of the five most popular funds available on the Old Mutual International life account platform.

Who runs it: It's a feeder fund that invests directly in the New Star Property Unit Trust, a collective investment regulated by the UK Financial Services Authority. The portfolio managers are Roger Dossett and Gregor Logan.

How risky: As most of the fund's assets are not listed shares, it does not show the same volatility as most other property funds - though the fund has been affected by the recent loss of confidence in the UK property sector in the wake of the subprime investment crisis. The fund is mostly invested in blue-chip properties, many in the City of London. Chances are that the subprime crisis will have no impact on its tenants' ability to pay rent.

How it has performed: Over the past 12 months it has returned 8,3% in sterling, compared with 15% in the previous 12 months.

The FM's view: Investing in UK property offers useful diversification for SA investors, as the asset class has little correlation with local assets.

Financial Mail