The portfolio consists of 59 quality properties, negligible voids and long leases. Around three-quarters of the portfolio is invested in the South East. It also has an above average allocation to higher quality tenants. It has c.20% in cash which gives it flexibility to invest quickly and to meet redemption requests, but could also be a drag on performance and dividends. In January 2014 we increased the rating of this fund to 5 stars as we are now more confident in the prospects for UK commercial property.
The fund manager's strategy is to focus predominantly on prime (as opposed to secondary) bricks and mortar property assets, located principally in the South East of England, which also stand to benefit from the existing planning restrictions. The current portfolio contains an overweight to regional offices and lower risks tenants. Average weighted lease length is in line with the IPD index.