Fund Objective

Aims to provide long term total return.

View on Past Performance

Property shares underperformed the broader market in October, with the FTSE Real Estate Index falling by 22%. The sell-off was triggered by worries over the accelerating downturn in the UK's commercial segment, as well as rental and earnings prospects. Both the European Central Bank and the Bank of England cut interest rates by 0.5%, as part of a synchronised global response to limit the impact of the credit crisis.UK commercial property values fell by 2.9% in September, bringing the decline since June 2007 to more than 24%. Transaction levels for UK commercial properties fell to £4.3bn in the third quarter, down 75% from the same period in 2007, according to Property Data.We sold Austrian developer Immofinanz and used the proceeds to initiate a position in UK-based Whitbread, as its valuation appeared attractive. The group, which runs the budget hotel chain Premier Inn and various pubs, has a stable balance sheet and diversified revenue streams through its Costa Coffee and pub restaurant businesses.

Fund Details