Fund Objective

The Fund is designed to provide UK pension funds with the opportunity to gain a diversified exposure to the UK commercial property market. The Fund consists of a portfolio of high-quality properties, invested across the three main sectors; retail, offices and industrial.

The objective is to outperform the Fund’s benchmark over the medium term. The benchmark is the median fund, as measured by the CAPS Survey of Pooled Property Funds.

Investment Approach

The manager conducts a disciplined approach to property investment management. This is done by combining market forecasts and research views on rental growth, depreciation rates and risk premia with the detailed market knowledge of in-house surveyors. This allows us to reach a view of what the prospective performance of property markets and assets will be given their current price. We can then use this to assist with buy, sell or hold decisions.

The Fund is diversified across the different property sectors. This is achieved by reviewing the structural and portfolio risk implications of holding various assets within the Fund and when acquiring new assets for the Fund. In researching properties and therefore the associated risk, the following are considered: location, property type, rent review and lease expiry pattern, tenant, industry sector, tenure, lease covenants and physical and environmental factors.