Bestinvest says
Schroders have appointed specialist property security managers, European Investors Incorporated (EII) as advisers to the fund. The manager Jim Rehlaender has over 35 years experience in the property sector, both directly and through managing global property securities funds; his historical track record against reference benchmarks has been particularly strong. Funds like this have the advantage of easily switching allocation between countries and sectors. Despite the lack of dividend yield on this fund investors can take comfort in the global exposure. The low investment in the UK shows the manager's comparatively bearish view on UK-listed property companies.
The universe of investments includes listed property companies world wide. The manager will seek to take advantage of what he perceives to be pricing inefficiencies in the market balanced against the fundamental attractiveness of the property company. Although the investment process focuses primarily on analysis at the company level, macro inputs also play a part in terms of relative valuation and local property market drivers. Security selection begins with the application of a qualitative screen to identify the investable universe, stocks with a market capitalisation under £200m are disregarded, followed by more detailed proprietary research to identify best ideas. Whilst the approach is unconstrained, the manager will aim to build a prudently diversified portfolio. This process is designed to reveal mis-priced securities with an emphasis on discovering lesser known companies with growth potential.