Charity property funds in the pink this year

Above average performance for some in first quarter of 2010

Charity property funds have performed in line with or above the market average in the first quarter of 2010, according to new figures from the Investment Property Databank.

The £328m Charities Property Fund, managed by Cordea Savills, rose in value by 4.4 per cent in the first quarter; the £123m Coif fund, managed by CCLA, rose by 6.4 per cent; and the £87m Property Income Trust for Charities, managed by Mayfair Capital, rose by 7.4 per cent.

The IPD balanced property funds index, which measures the overall performance of property funds, including those named above, rose by 4.8 per cent. All three of the named funds rose in value in 2009; the index fell by 1.8 per cent.

Charity fund managers said charity clients were showing more interest in property.

"All charity property funds have performed well recently," said Harry de Ferry Foster, director of the Charities Property Fund.

"Charities have traditionally liked property. It provides a comparatively good income in the present environment."

John Kelly, director of client services at CCLA, said: "Charities are looking at moving into property and away from government bonds."

He said his organisation was predicting slow but steady growth in capital values but secure income.


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