Bestinvest says
This portfolio of property companies (REITs) has a bias towards the US and Asia Pacific ex Japan regions (c.75%) with the remainder invested over Europe, Japan and the UK. Whilst we believe that property makes good sense as part of a large portfolio for diversification purposes, the manager's short track record means we have greater conviction in other funds within the property sector.
The research process is outsourced to the property experts Colliers International. They look at the big picture in terms of the prospects for property markets in different economic regions and markets. When they have identified areas of interest and stocks they conduct company visits, monitor liquidity and create detailed financial models, such as cash flow and and relative value analysis. First State is responsible for the portfolio, that is reviewing buy and sell decisions and how to weight the portfolio. Stocks are selected from a notional universe of more than 350 stocks (FTSE EPRA/NAREIT Index), which is eventually whittled down to a portfolio of up to 75 stocks.