The Affluence Team have been investing in commercial property (think shopping centres, office buildings and industrial sheds) for a long time. But over the past 18 months, we've reduced our property allocation in the Affluence Fund from around 25% of the portfolio to about 10%.

The chart below, courtesy of Investa Office Fund, shows two reasons why.

1. Property yields (income divided by property values) are now very close to, or below those reached just before the GFC.
2. At the same time, the share of foreign investors (mainly large investment institutions) is also at all-time highs.

The one potential bright spot? If our economy keeps growing well we may see some decent increases in rents, which will help.

Contributed by Affluence Funds Management