Morrell: property mispricing may persist

HSBC Global Asset Management's Guy Morrell believes property fund investors should diversify to include exposure to overseas markets.

Morrell, the group’s Open Global Property fund manager and head of multi-manager, has increased his weighting to UK direct property funds from zero in May 2009 to 54.2% at the end of Q4, with Henderson’s New Star UK Property fund the latest addition to the £11.6m portfolio. Figures from the IMA show net retail sales of property funds in Q4 2009 exceeded those recorded during the 2007 market peak, with the majority of flows going into UK-based physical property funds. But Morrell says although the short-term outlook is positive for the UK direct market, he remains cautious. He warns...