Schroder Global Cities Real Estate Z Accumulation GBP

Property

New for 2020. Taps into property prospects in buoyant markets in strong global cities    

Schroder Global Cities Real Estate is another newcomer to our Property asset group for 2020. We like the fund for its track record in beating inflation and its focus on the property prospects of strong global cities. Tom Walker and Hugo Machin, managers since 2014, aim to deliver the UK consumer prices index plus 3% each year over three to five years by investing in the equities of real estate companies worldwide. They have done this by a wide margin. They can also invest in real estate investment trusts (Reits); in fact all of their top 10 holdings are Reits. This makes the fund far more diversified than its 65 holdings would suggest – it has exposure to thousands of underlying investments.

The managers seek exposure to cities they believe will enjoy continued economic growth, supported by factors such as strong infrastructure and supportive planning regimes. The lion’s share of assets is in the US, where the fund had 56% at the end of 2019. Japan commands an 11% weighting. The fund has smaller allocations to a host of countries, including the UK.

Its two largest holdings are Terreno Realty Corporation Reit, which acquires, owns and operates industrial real estate in the US, and Alexandria Real Estate Equities Reit, which focuses on science and technology campuses in the US. Its only top 10 holding not focused on the US is Inmobiliaria Colonial, a Spain-based Reit. The fund yields 1.1%, paid annually.

Narrative and ratings content all as of January 2020.

See all Money Observer rated funds
Name
Schroder Global Cities Real Estate Z Accumulation GBP
Manager
Schroder Unit Trusts Limited
Type
Unit Trust
ISIN
GB00B1VPTY75
Sector
Property
Launched
16/04/2007
OCF
0.92 %
Risk Rating
3
3 Year Sharpe
0.29
3 Year Alpha
3.52
Yield
1.2 %
Benchmark
FTSE EPRA Nareit Developed TR GBP
The Fund aims to provide income and capital growth in excess of inflation (as measured by the UK Consumer Price Index) plus 3% per annum (after fees have been deducted) over a three to five year period by investing in equity and equity related securities of real estate companies worldwide. This cannot be guaranteed and your capital is at risk.
Holding %
Rexford Industrial Realty Inc 3.44 %
Alexandria Real Estate Equities Inc 3.02 %
Terreno Realty Corp 2.98 %
UDR Inc 2.86 %
Invitation Homes Inc 2.56 %
Healthpeak Properties Inc 2.51 %
Apartment Investment & Management Co 2.43 %
CubeSmart 2.42 %
QTS Realty Trust Inc Class A 2.34 %
Sun Communities Inc 2.33 %
Region %
United States 56.71 %
Japan 12.28 %
Eurozone 7.97 %
Sector %
Real Estate 93.93 %
Name
Schroder Unit Trusts Limited
Address
EC2Y 5AU, London, United Kingdom
UCITS
Yes
Legal Structure
Unit Trust

Managers

Hugo Machin
Joined 08/15/2014

Hugo Machin is Co-Head of Global Real Estate Securities at Schroders, which involves being responsible for the investment strategy of the Schroder Global Cities Real Estate, Schroder ISF Global Property Securities, Schroder Global Real Estate Securities Income and Schroder ISF Asia Pacific Property Securities. The total AUM is approximately £1.1bn GBP. He joined Schroders in 2014 and is based in London. Hugo was the Head of European Listed Real Estate at AMP Capital from 2006 to 2014, which involved setting up the London office for the AMP Global Property Securities Fund. He was an Analyst LPTs at ING Investment Management, Sydney from 2002 to 2006, which involved researching listed Australian and Asian property stocks. He was an Assistant Fund Manager at Welcome Trust from 1999 to 2002, which involved being responsible for commercial property portfolio. Qualifications: Diploma in Cross Border Valuation from Oxford Said Business School; MSc in Real Estate Finance and Investment from Reading University; BA in English Literature from Durham University.

Tom Walker
Joined 08/15/2014

Tom Walker is Co-Head of Global Real Estate Securities at Schroders, which involves being responsible for the investment strategy of the Schroder Global Cities Real Estate, Schroder ISF Global Property Securities, Schroder Global Real Estate Securities Income and Schroder ISF Asia Pacific Property Securities. The total AUM is approximately £1.1bn GBP. He joined Schroders in 2014 and is based in London. Tom was a Deputy Head of Global Listed Real Estate at AMP Capital from 2005 to 2014, which involved being responsible for investment, team management and client relationships. He was in the Valuation, Funds Management, Advisory departments at Jones Lang LaSalle from 1999 to 2005, which involved advising clients on all aspects of their UK portfolios. Qualifications: Graduate Diploma in Real Estate from London South Bank University; MRICS; BA in Politics from University of Newcastle Upon Tyne.

Data provided by Morningstar.

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