'Bond refugees' seek safe haven in property - F&C

European property is offering a safe haven to investors facing up to negative bond yields, said Alban Lhonneur, manager of the F&C Real Estate Securities fund.

Negative bond yields have become a common sight across the continent this year as the European Central Bank's quantitative easing programme pushes prices up further. Even German 10-year debt is now yielding less than 0.1%. That follows German 5-year government debt selling at a negative yield of 0.08% for the first time ever. Debt issued by Austria, the Netherlands and Finland is also yielding below zero. Investors have been forced to increase risk in response, according to Lhonneur. "European property has become a popular asset class as people move up the risk curve," he said. ...