If you have no exposure to UK commercial property, don't overlook the opportunity, following sharp falls in 2007. For example, the yield on the New Star UK Property fund is now 4.4% (after charges, before tax). Add to this the one-off bonus (of about 4%) if the fund returns to an offer price basis for valuations and it is not difficult to envisage returns of 8%.  This fund has been managed better than any of the other funds of this kind through a difficult 2007. In now has more than 25% in liquid assets, and is cherry picking opportunities. 

This is a core low risk holding, as part of your total exposure to property (UK and global).  If profits were taken in 2007, you could now consider increasing your weighting.  Do be aware that in the most extreme markets the fund can restrict your ability to encash. 

To achieve a high income together with some growth of both income and capital through investment primarily in commercial property and property - related assets. Other investments may include money market instruments, derivatives and forward foreign exchange contracts.

Roger Dossett & Gregor Logan