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Strategy

  • Property is an imperfect asset class which creates opportunity. Exploiting property's inefficiencies, which drives returns and hence influences our strategy
  • Property must be considered in relation to other asset classes and not in isolation
  • We listen to investors and tailor strategies to suit their requirements and attitude to risk

Stock Selection

  • Stock selection remains fundamentally important. This requires not only significant access to market opportunities but also the application of analytical techniques within the framework of a robust investment process

Asset Management

  • Property generates a regular cash flow that is responsive to asset management and contributes significantly to total return
  • Portfolios should be managed against a clearly defined strategic framework derived from detailed market knowledge and quantitative analysis
  • In recognition that property is a real asset, it needs to be managed effectively so as to exploit ‘added value’ opportunities

Risk management

  • Our approach to risk management derives from two principal forms, systemic market risk and stock specific risk
  • Systemic risk analysis involves looking at property as an asset class in a wide context of the economy as a whole and other asset classes
  • Stock specific risk 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

Research

  • Our internal and external top-down and bottom-up research underpins our portfolio strategies
  • Top-down research focuses on economic, financial and property market fundamentals, which lead to a set of strategic recommendations on sector and geographical allocation
  • Bottom-up research focuses on individual stock selection and active management potential