Picking a path through the hedges: despite the growing trend in cross-border portfolio diversification, property investors are still ill at ease with the concepts of exchange-rate hedging

Article Abstract:

There is an increasing trend towards UK based investors investing overseas with the aim of spreading the scope and increasing the performance of their portfolios. However, a survey shows that many property companies, institutions and fund management groups do not use exchange-rate hedges to protect the value of overseas property investments. Hedging methods include foreign exchange futures contracts, where currency exchange terms are paid in advance, option contracts, where the purchases has the right to buy or sell a currency at an agreed rate, and currency swaps, which is an exchange of debts.

Surveys, Hedging (Finance)

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Savills report augurs well for agricultural investors

Article Abstract:

Let farmland in the UK provided an average total return on investment of 27% in 1995, made up of 22.5% capital growth and an income return of 4.5%, according to the Savills/IPD survey of investment in agricultural land. There were particularly high returns in East Anglia, where capital growth was more than 39% and total return was 43.2%. A five-year return on let farmland was around 12%.

Agriculture, Crop Production, Analysis, Farm income

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Investors check in

Article Abstract:

It is becoming increasingly common for UK hotel firms to focus either on running the hotel or on developing the hotel real estate asset. Some firms are divesting their ownership of real estate assets in return for leases and management contracts.

Management, Hospitality industry, Hotels and motels

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