The funds reviewed here investing in global or regional (Pan-European) property equities are managed by an experienced property equity team with the recent addition of portfolio managers in the global fund to take care of the US property market allocation.
The funds are actively managed with active share above 65% and a Bottom up relative value investment decision. Portfolios are built on convictions with 50 to 60 stocks. The performance of the global fund has evolved in line with its reference index. It has well performed during the 1st half of the year returning close to 12% by the end of July, before given up almost all the gain to trade flat by the end of 2016. In a relative basis, the fund has outperformed its benchmark by around 1% for the period.
Specific feature of the portfolio is to be managed in three buckets; structural growth, income and value. Further quantitative and qualitative analysis needs to be done. We will add them in our watch list as candidates for an active exposure to the real estate markets, which still offer attractive dividend yields and dividend growth perspective at reasonable valuation.