fund

Rated

This is one of our rated funds. They’re the ones our experts believe will do well for investors over the longer term. Top of the class!

BMO European Real Estate Securities B Acc GBP

The fund invests in pan European property related equities.

  • 3383.00p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • -
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 5.00% 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 1.00%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 1.37%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 0.00%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 25 February 2020

The fund’s primary objective is to outperform its European Public Real Estate Association (EPRA) benchmark in all market conditions. It will do this by utilising an enhanced long strategy, maintaining substantially full investment (minimum 80% gross exposure) at all times but varying net exposure within a 60% to 140% range. Short positions in individual stocks and indices will be used to enhance returns relative to a traditional long only strategy. The fund is 90% a conventional "long" fund and has the added benefit of being able to be short 5 or so stocks to add more value.

Fund summary

Sector Property Other
Structure OFFSHORE FUND
Launched April, 2010
Size £264m
Yield 0.00%
Charging basis
Dividends paid Acc units only

Charges

Standard initial charge 5.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.00%
Ongoing charges figure 1.37%

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Investment process

This fund will target a total return greater than that produced by the FTSE EPRA/NAREIT Developed Europe Capped Index in Sterling. The fund will target outperformance of this index in all market conditions, generating a degree of capital protection through the active management of risk, volatility, and overall net exposure. The fund will combine stock selection capability with active management of net exposure, risk and volatility. Active sub-sector (e.g. offices, retail, industrials) and country exposures are monitored closely by the managers to ensure that significant positions (more than 3% from benchmark) are backed by the team's convictions.

This is a fund from an experienced manager whose other funds we rate highly, (TR Property Investment Trust in which the team has a 10 year record of benchmark outperformance in the fund's management). The fund invests in European real estate securities which are liquid and easily accessed. Sector valuations are currently attractive and the sector provides equity-like returns.

Manager research

Average monthly relative returns

  • 15/16 -0.09%
  • 16/17 1.74%
  • 17/18 -0.68%
  • 18/19 -1.08%
  • 19/20 0.33%

Bestinvest MRI

  • 3 years -0.48%
  • 5 years 0.04%
  • Career 0.13%
  • 3 years 50.00%
  • 5 years 50.00%
  • Career 80.20%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Marcus Phayre-Mudge

Phayre-Mudge joined Thames River (now part of F&C) in October 2004. He is the senior fund manager for TR Property Investment Trust plc (TRPIT) and manages the Ordinary share class. He is also lead manager of F&C Property Growth & Income Fund and co-manages F&C Real Estate Securities Fund. From January 1997, he was at Henderson Global Investors, initially managing the direct property portfolio within TRPIT and latterly managing a number of UK and pan European real estate equity funds, including the Henderson Horizon Pan European Property Securities Fund. Prior to joining Henderson, Phayre-Mudge was an Associate Partner in the fund management division at Knight Frank. Marcus qualified as a Chartered Surveyor in 1992 and has a BSc (Hons) in Land Management from Reading University.

Track record

Marcus Phayre-Mudge has 7.5 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.13%. During the worst period of relative performance (from September 2009 - November 2011) there was a decline of 23% relative to the index. The worst absolute loss has been 44%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 80%.

Periods of worst performance

Absolute -44.00% (April 2007 - March 2009)
Relative -23.00% (September 2009 - November 2011)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Top 10 holdings

UNIBAIL-RODAMCO 8.5%
BRITISH LAND CO PLC 7.0%
DEUTSCHE ANNINGTON IMMOBILIE 6.8%
LAND SECURITIES GROUP PLC 6.2%
SWISS PRIME SITE-REG 4.7%
WERELDHAVE NV 4.0%
FONCIERE DES REGIONS 3.9%
DERWENT LONDON PLC 3.7%
HEMFOSA FASTIGHETER AB 3.5%
LEG IMMOBILIEN AG 3.3%

Portfolio

50-80 positions including up to 20 single stock short positions

Constraints

80-160% gross exposure, 60-140% net exposure. 10% single-stock and 5%-40% stock concentration rules and counterparty limits

Key Investor Information

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