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This is a feeder fund into the M&G Property Portfolio Property Authorised Investment Fund (PAIF). Both have identical exposure to the UK commercial property sector predominantly by investing in bricks and mortar property with a "core plus" approach. The fund mainly invests in prime property with some secondary assets which offer management opportunities. Importance is particularly placed on: tenant exposure, lease expiry profiles, vacancies and liquidity. Investors should note that the management group reserves the right to swing the unit price without notice to reflect net fund flows.
|Sector||UK Direct Property|
|Dividends paid||Feb, May, Aug & Nov|
|Standard initial charge||2.00%|
|Initial charge via Bestinvest||0.00%|
|Additional bid/offer spread||0.00%|
|Annual management charge||0.75%|
|Ongoing charges figure||1.34%|
Before investing make sure you have understood the risks relevant to the fund by reviewing our Risk Warnings section. Further information on the risks are contained in the fund's Key Information Investor Document, which we make available to you before you make a decision to invest, alternatively it is available on request.
This fund has a high quality portfolio of c.100properties spread throughout the UK. We place high importance on its long lease length, low vacancy rate and low tenant risk. Manager Fiona Rowley's strategy is to balance the elements of income and growth within the portfolio, while managing the fund’s assets actively in order to optimize performance. She has access to one of the largest groups of analysts in the UK, M&G Real Estate. High cash positions may hold back performance and dividends.
|High yield bonds||0|
The fund targets five key property sectors: standard retail, retail warehouses, shopping centres, offices and industrials. The manager has access to one of the largest groups of analysts in the UK, M&G Real Estate. Around 1,500 to 2,500 new properties are screened annually by M&G Real Estate and prospective properties are analysed through a number of bespoke valuation models. The strategy is continually reviewed with importance particularly placed on: tenant exposure, lease expiry profiles, vacancies (current and potential) and liquidity. The core of the fund will consist of prime properties, but the manager will also invest in some secondary assets which offer management opportunities.
|Fund data updated on||13/11/18|
|High yield bonds||0|
As at: 30/09/2018
5.81% New Square Bedfont Lakes Office Park
4.51% Parc Trostre Retail Park
4.16% Wales Designer Outlet
3.53% Alder Castle 10 Noble Street
3.41% Fremlin Walk
3.13% Riverside Retail Park
2.83% The Gracechurch Centre
2.66% Iron Mountian Distribution Centre
2.65% Aurora, 120 Bothwell Street
2.23% Ravenside Retail Park
|Offices - Property||25%|
|Warehouse - Property||17%|
|Shop - Property||10%|
|Retail - Property||8%|
As at 31/12/2017: fund size £3.7bn; 106 properties; Average lease length 9.3 years; void rate 7.0%; Cash and near cash 16%, Direct Property exposure 84% of which; Standard Retail 10.0%, Retail Warehouses 20.9%, Shopping Centres 12.7%, Offices 30.5%, Industrial 17.2%, Other 8.7%; Largest 10 assets as a proportion of the portfolio 35.31%
Max 10% of value in a single property at the time of investment. Max 10% of income from a single tenant. It may also invest a small % of its assets in specialist bricks and mortar property vehicles and property derivative instruments.
|Average monthly relative returns||Bestinvest MRI|
|13/14||14/15||15/16||16/17||17/18||3 years||5 years||Career||3 years||5 years||Career|
|Performance figures are based on the average of monthly percentage returns relative to the benchmark index.|
Rowley began her career as a graduate in 1990 when she joined Knight Frank. In 1994 she joined Prudential (M&G’s parent company) as an investment surveyor and in 2004 became part of the retail funds team, now called M&G Real Estate, formerly known as Prudential Property Investment Managers (PruPIM). Rowley holds a first class honours degree in Estate Management from South Bank University and is a Member of the Royal Institution of Chartered Surveyors.
Fiona Rowley has 11.1 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.33%. During the worst period of relative performance (from June 2009 - October 2018) there was a decline of 39% relative to the index. The worst absolute loss has been 37%.
|Periods of worst performance|
|Absolute||-37% (October 2007 - May 2009)|
|Relative||-39% (June 2009 - October 2018)|
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.