Risk Management

Risk takes two principal forms

• Systemic Market Risk
• Stock Specific Risk

Systemic Market Risk

Systemic risk analysis involves looking at property as an asset class in a wide context of the economy and other asset classes.

Stock Specific Risk

Stock specific risk however is controllable and requires analysis of the quality of income, length of income, risk of voids, sector, regional and development risk, all of which are explicit in our investment process.

Risk management provisions include:

• Maximum lot size for a single asset as a percentage of a Fund
• Limit on the percentage of portfolio income delivered from one tenant
• Individual sector balance vs benchmark
• Geographical balance vs benchmark
• Limits on development exposure
• Limits on borrowing powers

The risk management provisions are designed to control risk whilst providing a framework within which the Fund can achieve its performance objectives.