Typically, properties in great locations such as the Palm Jumeirah or Emirates Hills witness capital appreciation
. These are the areas of choice for affluent professionals.
On a city wide basis, capital appreciation
since 2009 has been a mere 16%, whereas the total returns including rent during the same period have been close to 70%.
What sets the Ephraim Global Improved Revenue Portfolio apart from other conventional income funds is its objective to generate supplementary revenue by selling the right to a part of the capital appreciation
potential of some of the fund's holdings for a definite period in exchange for additional upfront income.
Russell Investments has announced the launch of the Russell Multi-Strategy Income Fund (RMYSX), which seeks to maximize current yield while retaining the potential for capital appreciation
to support sustainable income in the future.
In a market that has been challenged by the US interest rate outlook, geo-political events and declining oil prices, we are particularly pleased that Sukuk Income Fund continues to create wealth through capital appreciation
and attractive income generation."
The National Council of Real Estate Investment Fiduciaries (NCREIF), Chicago, reported its property index returned 2.57 percent for the quarter, comprised of a 1.39 percent income return and the 1.18 percent capital appreciation
DIVIDEND OPTION Quantum, frequency of payout decided by fund houses Payouts made only from the capital appreciation
portion Principal remains untouched as dividends are paid from capital appreciation
portion A 12.5 per cent dividend distribution tax is deducted from the payouts Vs SWP OPTION Investors decide both quantum and frequency of payouts Payouts can be made from capital appreciation
and principal Principal amount may erode if capital appreciation
is less than each payout instalment Investors are liable to pay capital gains tax - short/long-term
"The negative is it doesn't promise a whole lot of capital appreciation
because the prime markets are already fully priced," AFIRE chief executive James Fetgatter said.
Howard, lead manager on the Prospector Capital Appreciation
Fund, has a reservoir of knowledge developed over decades that includes portfolio management stints at names like Fidelity and T.
"Last month's growth concluded a fifth-consecutive quarter of capital appreciation
, at 0.5%, bringing the cumulative growth since the recovery to 15.8%," IPD said.
ABL-SF aims to provide long term capital appreciation
to investors by investing in a diversified portfolio of high quality listed stocks offering capital gains and dividends.
The total return unitrust is an attempt to reconcile the conflicting interests of the income and remainder beneficiaries by allowing the trustee to invest trust assets for total return (i.e., for capital appreciation
as well as income).
The objective of the fund is to enhance long-term return through capital appreciation
of the portfolio.
The Global Jordan Fund launched in October 2006 is aimed at achieving capital appreciation
with optimum returns over the medium- to long-term by investing in the ASE as well as in initial public offering (IPO) and pre-IPO issues in Jordan.