6 January 2009
Property hit in APCIMS indices reflecting harsh economic conditions
The Association of Private Client Investment Managers and Stockbrokers (APCIMS) is changing the weightings of the FTSE APCIMS index to reflect a downturn in commercial property investment. The changes will take effect on January 19th 2009. The index will reduce the property aspect of the model portfolio by 2.5%, reallocating it to bonds.
Mike Lenhoff, chairman of the APCIMS Indices Committee said:
“The Committee has observed for some while now a significant fall in the allocation made to commercial property amongst the private client investment management community. Portfolio managers have been moving portfolio allocations from property to bonds and gilts. This shift in allocation away from commercial property partly reflects the liquidity squeeze and the recession that is underway.”
The APCIMS/FTSE index provides a benchmark for asset allocation over three model portfolios. Commercial property as an asset class was introduced in June 2007, along with hedge funds, to reflect the growing trend towards investing in alternative assets.
Mike Lenhoff said: “This is the first time since it was first introduced in 2007 that the Committee has responded to the changes APCIMS members are making to the weighting of commercial property in their asset allocation models.
- ENDS -
For more information please contact:
Dirk Paterson, Head of Communications, APCIMS
on 020 7448 7100
Mobile: 07507 855 428
Email: dirkp@apcims.co.uk
Notes to editors:
FTSE APCIMS Private Investor Index series
- The FTSE APCIMS Private Investor Index Series is designed to compare the performance of income, growth and balanced funds; as a basis for reviewing the asset allocation and structure of a portfolio; and as a benchmark for assessing and comparing the performance of discretionary fund managers
- The index series incorporates returns from the FTSE All-Share Index, FTSE World ex UK Index, FTSE Gilts All-Stocks Index, FTSE All UK Property Index, FTSE Hedge Index and Cash on deposit
- Capital and total return versions are available for the index series
- The indices are managed according to a transparent and public set of index rules, and overseen by an independent committee of leading market professionals. The committee ensures that the rules are correctly applied and adhered to. Regular index reviews are conducted to ensure that a continuous and accurate representation of the market is maintained.
APCIMS
- More than 12 million people in the UK currently invest directly in stocks and shares and other financial instruments to secure their financial futures
- APCIMS represents over 140 firms all over the UK who deal primarily in stocks and shares on behalf of individuals and the institutions in which we have our money
- Around £400 billion of the country’s wealth is under the management of our members
- Our aim is to ensure that the regulatory, tax and other changes across Europe minimize impact on the investment community
- We want to lead the debate on regulation in Europe, with UK regulators and with British parliamentarians to make sure consumers are protected while at the same time our industry flourishes in the UK
Current asset allocation
Income porfolio |
% Growth portfolio |
% Balanced portfolio |
% Representative index |
|
| UK shares | 45 |
47.5 |
42.5 |
FTSE All-Share |
| International shares | 10.0 |
30 |
22.5 |
FTSE Worl Ex-UK Index calculated in Sterling |
| Bonds | 35 |
5 |
17.5 |
FTSE Gilts All Stocks index |
| Cash | 5 |
5 |
5 |
7-Day LIBOR -1% (London Interbank Offer Rate) |
| Commercial Property | 5 |
5 |
5 |
FTSE UK Commercial Property Index |
| Hedge Funds | - |
7.5 |
7.5 |
FTSE Hedge |
| Total | 100 |
100 |
100 |
Allocation from January 19th 2009
Income porfolio |
% Growth portfolio |
% Balanced portfolio |
% Representative index |
|
| UK shares | 45.0 |
47.5 |
42.5 |
FTSE All-Share |
| International shares | 10.0 |
30.0 |
22.5 |
FTSE World Ex-UK Index calculated in Sterling |
| Bonds | 37.5 |
7.5 |
20.0 |
FTSE Gilts All Stocks index |
| Cash | 5.0 |
5.0 |
5.0 |
7-Day LIBOR -1% (London Interbank Offer Rate) |
| Commercial Property | 2.5 |
2.5 |
2.5 |
FTSE UK Commercial Property Index |
| Hedge Funds | - |
7.5 |
7.5 |
FTSE Hedge |
| Total | 100 |
100 |
100 |