The ISIS Property Trust Limited is to be acquired by IRP Property Investments Limited on 11 April 2013 and will not be available for new investment after that date.

The merged trust will be renamed F&C UK Real Estate Investments Limited. Continuing investors will find information about the trust and their investment under this name.

The Trust aims to deliver an attractive level of income together with the potential for income and capital growth from investment in a diversified UK commercial property portfolio. It offers investors prime exposure to commercial property assets.

Key points

This trust offers exposure to a diverse portfolio of UK commercial property and a high level of income, paid quarterly. Investors can gain exposure to an asset class that is usually not accessible, via a readily realisable vehicle

Fund facts
Investment manager F&C Investment Business Limited
Launch date 28 October 2003
Total assets £119.5 million (as at 31.12.12)
Currency GBP
ISIN GB0033674564
SEDOL 3367456
Key dates
Annual general meeting May 2013
Year end 31 December
Dividend payment date(s) February, May, August and November

Fund manager commentary

Property Market Overview

The UK property market delivered a total return of 0.8% in Q4 2012, to give a full year out-turn of 2.7%. Capital values fell by 0.7% in the quarter, having been consistently, if modestly, negative throughout 2012. Rental growth was flat for the fifth successive quarter. A disappointing UK economic performance, concerns about the global economy and sovereign debt worries affected sentiment for much of 2012, although there were some signs of stabilisation as the year drew to a close. Central London has out-performed the regions, helped by strong inflows of capital from overseas and the office market was the strongest performer among the three main property

Portfolio Overview

The property portfolio produced a total return of 1.0% during Q4 2012, and returned 3.7% for the full year. Capital values trended negative and the portfolio value fell by 0.6% over the quarter and 3.1% over the full year. During the quarter, 14 Berkeley Street, London, W1 was the largest contributor to relative performance returning 3.4%, as a result of the continued strong investment market and the building becoming fully income producing following its refurbishment. Keens House, Andover, let to LloydsTSB until 2076 was the best performer returning 4.4%, as a result of further inward yield movement. Despite the turbulent economic conditions affecting business especially in the retail sector, the void rate on the portfolio remained low at 2.5% compared with IPD benchmark average of 9.1%. The average weighte

Propsed Merger

As announced to the market on 7 February 2013, the Boards of IRP Property Investments (‘IRP’) and ISIS Property Trust (‘IPT’) reached agreement on the terms of a recommended merger of the entire assets of IRP and IPT. Extraordinary General Meetings for both Companies will take place on 11 April 2013 to vote on the proposal.

As at 31 December 2012

The value of shares and the income from them is not guaranteed and can fall as well as rise due to stock market movements. Past performance is not a guide to future performance. When you sell your shares, you might get back less than you originally invested. If markets fall, gearing can magnify the negative impact on performance. Changes in rates of exchange may have an adverse effect on the value, price or income of investments. Emerging Markets, Unquoted Companies and Smaller companies carry a higher degree of risk and their value can be more sensitive to market movement; their shares may be less liquid and performance may be more volatile. The fund may invest in hedge funds or private equity funds which are not normally available to individual investors, exposing the fund to the performance, liquidity and valuation issues of these funds. Such funds typically have high minimum investment levels and may restrict or suspend redemptions or repayment to investors. The asset value of these shares and its prospects may be more difficult to assess.

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