Research_strapline

Are you an:

Don't let the labels put you off!
If you're not an investor, but you want to learn, you can select investor

×

Register for FundCalibre!

We just need to know
if you are an:

Don't let the labels put you off!
If you're not an investor, but you want to learn, you can select investor

×

F&C Real Estate Securities

Elite Rated by FundCalibre

This fund provides access to a portfolio of real estate securities listed in the UK and Europe. F&C is one of the bigger players in this space and run several other similar mandates. Consequently, they have one of the best resourced and most experienced teams in European listed real estate. This fund also has an impressive track record.

Company Description

F&C is an investment manager with a history stretching back to the nineteenth century. It is a wholly-owned subsidiary of Bank of Montreal (BMO) and is part of BMO Global Asset Management, specialising in equities, bonds, property and multi-asset investing.

Factsheet_f_c_logo

Fund Manager

Marcus Phayre-Mudge has been involved in property investment since 1992 and has had considerable success running the TR Property Investment Trust since 2004. Alban Lhonneur’s career in property started in 2006, and prior to joining F&C, he worked at Citigroup and Societe Generale.

Factsheet_phayre-mudge_marcushr

We see real estate as an income stream with a capital kicker. Our robust stock selection process generates alpha using a directionally long bias strategy, that maintains the flexibility to use short positions in individual stocks.

Marcus Phayre-Mudge - Fund Manager

The Investment Process

The investable universe is split into 16 subsectors, with the managers forming a macroeconomic view as to which sectors to over or underweight. Individual stocks are then subjected to fundamental analysis. Every stock they cover is given an expected and required return. Riskier stocks have higher return requirements. Stocks that they believe can outperform the benchmark and their required return are overweighted. However, as this is a tight universe with only 85 stocks in the index, the managers use the full range of tools available to them to express their views and control risk. This means they will often equal weight stocks they have no view on and underweight or short stocks on which, they have a negative view.

Risk

This fund invests in listed property equities. These securities over short time periods are highly correlated to equities. However, over longer time periods these securities track the performance of the underlying properties, which are traditionally much less volatile than mainstream equities.

Our Opinion

The size and strength of the team mark out this fund versus some of its competitors. Also, the unique way the managers use the full range of tools available to them, namely by shorting unfavoured stocks, enables the managers to express a wider range of views and better manage risk. This is a big positive given the small size of their investment universe. Put into practice this translates into consistent outperformance and favourable risk/ return characteristics.

  • Fund
  • Sector

©2014 FundCalibre Limited. All Rights Reserved. The information, data, analyses, and opinions contained herein (1) include the proprietary information of FundCalibre, (2) may not be copied or redistributed without prior permission, (3) do not constitute investment advice offered by FundCalibre, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a fund, and (5) are not warranted to be correct, complete, or accurate. FundCalibre shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, this information, data, analyses, or opinions or their use. The Elite Fund rating is subjective in nature and reflects FundCalibre’s current expectations of future events/behaviour as they relate to a particular fund. Because such events/behaviour may turn out to be different than expected, FundCalibre does not ,guarantee that a fund will perform in line with its FundCalibre benchmark. Likewise, the Elite Fund rating should not be seen as any sort of guarantee or assessment of the creditworthiness of a fund or of its underlying securities and should not be used as the sole basis for making any investment decision. FundCalibre disclaims any responsibility for trading decisions, damages or other losses resulting from any use of the Elite Fund rating.