Investment flexibility is one of the keynotes of switching from a UK pension to Qualifying Recognised Overseas Pension Schemes (QROPS).
Financial advisers extol the ability for QROPS investors to put their cash into more funds, commodities, markets and currencies than a standard onshore pension.
QROPS can cater for the risk appetite of most investors – from conservative pension savers who want to protect their nest-egg to those who are more aggressive and want to see their funds grow at a pace that outstrips inflation and the stock markets.
One of the best performing investment sectors is property, which has shown some outstanding returns since taking a knock in the credit crisis.
Top performing property funds
According to the Royal Institution of Chartered Surveyors, some of the top performing funds have really shone over the past three years –
- Premier Pan European Property Share has given a 39% yield
- SWIP European Real Estate has returned almost 23%
- Legal & General UK Property has given a more conservative13.9%
- Schroders Global Property Income Maximiser has provided 13.8%
Stripping out inflation that has hit more than 5% at some of that time and remembering growth inside a QROPS is free of capital gains tax, these funds have easily outperformed most other sectors and funds.
However, RICS rates another property fund ahead of all four.
The first London Central Portfolio Property Fund closed in 2007 but has seen almost a 59% increase.
A second fund was launched on the back of that performance, closing in 2009 and has yielded just over a 50% return on investment.
Due to the success of the first two funds, a third, London Central Apartments, was launched in December 2013 and is now fully invested and is already showing more than a 27% increase in value.
Only Sharia QROPS property fund
Now, a second London Central Apartments fund is available to QROPS investors.
The fund managers are buying up one and two bedroom apartments in Central London and refurbishing them for private rental.
“This seems to be just what investors and renters want,” said London Central Portfolio chief executive Naomi Heaton.
She explained the fund will take in around 100 small flats priced at under £1 million in London’s prestigious Mayfair and Kensington neighbourhoods. Projected returns are 14% over five years.
“Not only do we believe the fund will perform well in a QROPS, but the fund is the only Sharia-compliant property fund for QROPS and QNUPS investors,” said Heaton.