How Fed rate rise will impact property funds

Dirk Philippa, portfolio manager of the Fidelity Global Property fund, argues higher interest rates should not always be seen as a negative for real estate investors.

  To quote Donald Trump, "It's tangible, it's solid, it's beautiful. It's artistic, from my standpoint, and I just love real estate". Yet even direct property has drawbacks for retail investors, particularly from a liquidity standpoint, and gaining access to your cash can take time if you want to sell your holding. Other problems associated with directly investing in property include high transaction costs and performance measurement difficulties. In turn, property securities are seen as total return investments as they provide attractive dividends plus the potential for moderate, l...