TR Property Investment Trust
Rated Fund 2014-19. Invests in property companies across Europe
TR Property is unusual. It is the only investment trust listed by the Association of Investment Companies that invests mainly in the shares of property companies rather than physical property.
It can invest internationally, but the majority of its holdings are in Europe including the UK. It can invest in physical property in the UK, though this will generally not account for more than 20% of the portfolio. At the end of 2018, the trust had 8% invested in UK direct property, with the majority of the portfolio in continental shares led by allocations to Germany and France.
Although its yield is relatively modest at 3.3%, the trust has been growing its income for the best part of two decades. Marcus Phayre-Mudge has been the lead manager since 2011.
His extensive knowledge of the market makes this trust one of Morningstar’s highest-conviction ideas for active management within the European listed real estate sector.
Phayre-Mudge’s ideal company is well-run, with a sound balance sheet. He and his team look in detail at each company’s property assets, their balance sheets and the management’s long-term record in using capital effectively to build their own asset valuation and earnings expectations for each company.
The manager stresses that the portfolio is managed on a total return basis. Although income is carefully considered and the trust’s aim is to maintain a progressive dividend, overall performance is the prime objective when considering how to position the portfolio.
On average, shares in the trust traded around the value of the underlying assets during 2018, but could at times be picked up on a mid single-digit discount.
Narrative and ratings content all as of 01 January 2019.See all Money Observer rated funds
|Vonovia SE||11.18 %|
|LEG Immobilien AG||5.63 %|
|UNITE Group PLC||4.50 %|
|Gecina Nom||4.20 %|
|Segro PLC||4.00 %|
|Land Securities Group PLC||3.94 %|
|LondonMetric Property PLC||3.81 %|
|Fabege AB||3.80 %|
|United Kingdom||36.44 %|
|Europe - ex Euro||12.54 %|
|Real Estate||99.20 %|
Jo has been Finance Manager since 1995, first at Henderson Global Investors then, since January 2005, at Thames River Capital (now part of BMO Global Asset Management), when she joined as CFO for the property team. She joined Henderson Investors in 1995, where she most recently held the position of Director of Property, Finance & Operations, Europe. Previously she was Corporate Finance Manager with London and Edinburgh Trust plc and prior to that was an investment/treasury analyst with Heron Corporation plc. Jo has a BSc (Hons) in Zoology from the University of Nottingham and qualified as a Chartered Accountant with Ernst & Young in 1989.
Marcus Phayre-Mudge joined the company in October 2004 and is a fund manager and head of our Real Estate Securities team. Prior to joining, Marcus was a partner at Thames River Capital (now part of BMO Global Asset Management). He was at Henderson Global Investors from 1997 to 2004. He manages the TR Property Investment Trust, the largest European closed-ended real estate equity Investment Trust as well as co-managing BMO Property Growth & Income Fund (which he launched in 2005) and the BMO Global Real Estate Securities Fund. Prior to joining Henderson, Marcus was an investment surveyor at Knight Frank (1990) and was made an Associate Partner in the fund management division (1995). He qualified as a Chartered Surveyor in 1992 and has a BSc (Hons) in Land Management from Reading University.
Alban joined the company in July 2008. He is the lead fund manager of BMO Real Estate Equity Market Neutral Fund and BMO European Real Estate Securities Fund, and co-manager of the BMO Global Real Estate Securities Fund and BMO Property Growth & Income Fund. He was previously at Citigroup Global Markets as an equity research analyst focusing on continental European real estate. Prior to that he was at Société Générale Securities, where he focused on transport equity research. He completed a BSc Business and Management programme at ESC Toulouse, including one year at the Brunel University, School of Business Management in London. He also attended CERAM Nice High Business School. In 2005 he obtained a post-graduate Specialised Master in Finance in 2005 from ESCP-EAP.
Gay is chief operating officer with First Affirmative Financial Network. Prior to joining the company as a financial planner in 1986, he was a chief resource-management officer in Fort Carson, Colorado for 12 years. He looks for growth at a reasonable price, seeking a balance of established stocks and emerging services and technologies. A Certified Financial Planner, Gay majored in national security and public affairs at West Point.
Data provided by Morningstar.
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