Yields are starting to fall as prices rise.

Comparison share.

Looking at the chart, you will see that you haven’t made any money since the start of the year, in fact you would have lost a little, whereas the Snowball has increased its income by around 6k, which when re-invested, will provide further income for next year of around £500, plus a small contribution for the rest of this year.

Ian Cowie: the sector on a roll and offering yields of 8%-plus
This sector’s seen an upturn in performance, but many investors are steering clear. Our columnist considers whether this is a potential opportunity for contrarians.

19th June 2025

by Ian Cowie from interactive investor

Related Investments

AEWU, SREI

How do you fancy this for contrarian income-seekers ? A British investment trust sector that is so far out of fashion that the average fund offers a dividend yield of 8.1%, despite delivering total returns of 20% over the past year, but the shares continue to be priced -16% below their net asset value (NAV).

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Better still, for those of us who prefer winners to averages, the top investment trust among 10 funds in this sector, currently yields above 7.7%, despite delivering total returns of 32% over the last year; albeit priced at a more meagre discount of -4%. You normally have to choose between income and growth, but lucky shareholders here have enjoyed both.

That’s enough of the tease intro: step forward AEW UK REIT Ord
AEWU
0.77%

This £230 million fund also leads the Association of Investment Companies (AIC) “Property: UK Commercial” sector over the past five years and decade periods, when this real estate investment trust (REIT) delivered triple-digit total returns of 125% over both periods.

So, this little-known fund has notched up an impressive hat-trick to lead its sector over all three standard investment periods. While it’s important to remember that the past is not necessarily a guide to the future, it has clearly not been a value trap where the real price of a high income today is low or no capital growth tomorrow.

Named after its Boston-based founders Aldrich, Eastman and Waltch – hence AEW – the fund managers have earned their high annual fees of 1.6% by shrewdly tending a portfolio of smaller commercial properties; predominantly in the provinces. For example, its most valuable holding is the site for the Welsh packaging firm Plastipak in Gresford; followed by flexible offices in Northgate House in Bath; with 40 Queen Square, Bristol, not far behind.

The nearest AEWU gets to capital city glamour is London East Leisure Park in Dagenham. But relatively low property prices have pushed up rental yields and worked well for this fund.

Similarly, the second-best performer in this sector over the past year is Schroder Real Estate Invest Ord
SREI
2.62%

a £485 million fund that yields nearly 6.6% with total returns over the past year, five years and decade of 29%, 119% and 57%. It is currently priced at a discount of nearly -19% to its NAV.

Once again, the underlying portfolio is based far from big city bright lights and high prices. SREI’s top holding is Stacey Bushes Industrial Estate at Milton Keynes; followed by Millshaw Park Industrial Estate in Leeds; then Stanley Green Trading Estate in Cheadle.

However, it’s not cheap, with eye-watering annual charges of 2.7%, they can point to increasing shareholders’ income by an impressive annual average of more than 11% over the past five years. By contrast, AEWU has failed to sustain any annual increase in dividends over the same period.

Which brings us back to how they managed to combine capital growth with high dividend income and remain priced at discounts to their NAVs, along with most of the other eight funds in the “Property: UK Commercial” sector.

Working from home, a social phenomenon so well-known that it became an acronym, WFH, plus the growth of online retail, have convinced many investors that business parks, offices and shopping malls are dead or dying assets.

Watch our video: why gold and defence shares will keep rising
Should fund managers reveal their ‘skin in the game’?
While the online retail trend doubtless has further to run, we may have already passed the high-water mark for WFH, now that fear of contagious diseases – such as Covid – recedes in the rear-view mirror. However irrational it might seem to insist that employees who spend all day online should do so in an office, rather than their own homes, the fact remains that many employers prefer it that way – and increasing numbers are insisting on it.

Amazon, Barclays, BlackRock and, this week, HSBC, are among big businesses currently trying to encourage or enforce the return to office work. So, it seems that reports of the death of the office or other workplaces have been exaggerated and commercial property could continue to deliver capital growth plus income for contrarian investors.

Ian Cowie is a freelance contributor and not a direct employee of interactive investor.

Stock markets will always tumble thanks to emotional investors. Stay the course and profit

Sharp share price fluctuations offer buying opportunities

Robert Stephens

Questor is The Telegraph’s stock-picking column, helping you decode the markets and offering insights on where to invest.

Stock market investors have been left reeling by the exceptionally high levels of volatility that have been present over recent months.

The most notable source was the announcement of significant tariffs by the US, swiftly followed by protectionist policies from China, the EU and elsewhere, which prompted a sudden slump in share prices in early April.

While the stock market has enjoyed a broad recovery since then, its intraday volatility has remained relatively high, as investors continue to react to ongoing news regarding the potential for additional barriers to trade.

In the short run, it would be unsurprising if share prices continue to fluctuate wildly – after all, geopolitical risks remain elevated. This means investors are likely to find the task of estimating future company performance even more difficult than usual, with government policy seemingly subject to change on a whim.

The prospect of further heightened volatility could dissuade some investors from buying and holding shares. In Questor’s view, this is an entirely logical viewpoint for those individuals who have a short-term horizon.

However, investors who have a long-term horizon, which this column defines as a decade or more, should not view heightened stock market volatility as a problem. Put simply, it does not equate to a greater chance of permanent capital loss. This is because a company’s share price and financial performance are not necessarily closely linked over the short run.

Rather, short-term share price movements are largely a reflection of market sentiment that, in turn, is subject to ebbs and flows based on highly changeable – and often irrational – investor emotions. They can cause wild share price swings that bear little, if any, resemblance to a company’s financial standing.

Indeed, even the most financially sound businesses in the FTSE 100 index have seen their share prices slump from time to time.

Long-term investors who simply hold onto their positions during periods of elevated stock market volatility will, of course, experience temporary paper losses. But providing they stay the course, the stock market’s past performance suggests they can expect to enjoy a recovery and capital gains over the long run.

Indeed, the FTSE 100 index has delivered excellent returns despite its frequent bouts of heightened volatility. Since its inception in 1984, a period which includes the dot-com bubble, global financial crisis and Covid pandemic, it has produced an annualised total return of around 8pc.

At the time of these events, it was difficult to see a clear path to recovery for the stock market. Many long-term investors therefore sold out of shares, and determined that other assets offered a better risk/reward opportunity. But the FTSE 100 index not only returned to its pre-crisis highs following each of those events, it has consistently broken records, including several this year.

In the future, the stock market is very likely to follow a similar pattern of high long-term returns interspersed with periods of elevated volatility. In Questor’s view, investors in shares must ultimately accept that the former can never realistically be achieved without experiencing the latter.

It could be argued, moreover, that heightened stock market volatility should be viewed in a positive light by long-term investors. In many cases, they are net buyers of shares given their extended time horizon. 

Periods of elevated volatility provide opportunities to buy high-quality companies at lower prices than would normally be the case, with their market valuations sometimes considerably below their intrinsic values.

Of course, this does not mean that investors should seek to time the market by waiting for periods of temporary decline before buying shares. However, it highlights that the stock market’s inherent volatility could prove to be a surprisingly useful ally that leads to higher returns over the long run.

The income figure at the half way stage of the year will be £6,581.00

Do not scale to arrive at the year end figure as the amount includes

a special dividend from VPC. The Snowball is on track to achieve

its fcast of £9,120 and the target of £10,000.

You should always earn a dividend as you wait to be proved right or wrong.

Anime World Apk animeworldapk.inx Bolan88360@gmail.com 191.102.129.140

I know this if off topic but I’m looking into starting my own weblog and was wondering what all is needed to get set up? I’m assuming having a blog like yours would cost a pretty penny? I’m not very internet savvy so I’m not 100 certain. Any tips or advice would be greatly appreciated. Thanks

The Snowball uses WordPress hosted by Fasthosts. Current cost around £8 per month although there is a discounted teaser rate.

EPIC Name Market Share Price Dividend Div Impact Declaration Date Ex-Dividend Date Payment Date

SDIP Global X SuperDividend UCITS ETF ETF 679.0p $0.0765 0.84% 18-Jun-25SDIP:SDIV

18-Jun-25 Dividend Announcement

26-Jun-25

03-Jul-25