About Us Press Release
CSAM's UK Property Unit Trust's interventionist style delivers outstanding performance on its first anniversary
The Fund's performance was ranked second over one year within its peer group of 20 All Balanced property funds.*
Commenting on the performance of the Credit Suisse Property Unit Trust, Glenn Newson, Head of Property at CSAM said:
"We believe that our stock selection and interventionist management style enables us to add value which achieves consistent outperformance for our clients. Our policy is key to enhancing client returns. We will always look to discuss various options with a tenant that may generate additional alpha.
"The performance during 2004 cannot be attributed to any one particular area, which fits deliberately with our policy of spreading costs and maximising opportunities. Over 10% of the 21.3% return has come from capital appreciation due to yield compression. Other contributing factors include some lease restructuring at the beginning of the year, favourable rent reviews and successful lettings.
"In terms of sectoral performance, at the beginning of 2004 we had a low weighting in the Central London office market. We are now positive on the sector and believe there are opportunities, but stock selection is key. We were also overweight the industrial sector during the latter part of the year."
Commenting on the outlook for the UK commercial property market for 2005, Glenn Newson said:
"I believe that 2005 looks good for the UK commercial property market. We also anticipate convergence of the three sectors (industrial, central and retail) on the basis that we are only expecting limited rental growth. As a result, the key to continued outperformance will be research driven stock selection and strong management, which is where our interventionist approach will pay dividends.
"We continue to believe property should remain a key allocation in a portfolio for institutional and high net worth investors for the following reasons: consistent performance, high income yield, which plays a role in liability matching for pension schemes, and the diversification benefits due to property's low correlation to both the equity and bond markets."
CSAM's award winning, 17 strong UK commercial property team has been working together since 1989 with an average of 17.5 years' experience. It provides a total management service for institutions looking to invest directly in commercial property, managing in excess of £1 billion on behalf of major UK public and corporate pension funds through segregated mandates and through investment in its property unit trust and its pooled pension fund. Smaller pension funds, life companies, charities and high net worth individuals can invest in CSAM's offshore UK Property Unit Trust. In co-operation with an Islamic Bank, the UK team were amongst the first managers to launch a 'Sharia Fund' created specifically for Islamic clients.
The team has earned a number of awards in the UK. They managed the Top Performing Trust (sponsored by IPD/IPF) between £50 million and £200 million for two consecutive years in 2000 and 2001, and were awarded the Public Treasurer Investment Award for the top performing Local Authority over three years in both 2000 and 2003. The team was highly commended in the Pensions Management Provider Awards 2004.
The CSAM UK Property Unit Trust is an unregulated collective investment scheme which is only available to certain categories of customers. Potential investors should note that past performance is not a guide to future performance; the price of units and the income from them may fluctuate upwards or downwards and cannot be guaranteed. Units or shares in schemes investing in property are not readily realisable investments. Potential investors should be aware that the underlying property of these vehicles may not be readily saleable and that the value of real property is generally a matter of valuer's opinion. There is no recognised market for the investment and it may be difficult for the investor to deal in the investment or for the investor to obtain reliable information about its value or the extent of the risks to which it is exposed.
*Source: IPD UK Monthly Index and HSBC's Pooled Property Fund Indices December 2004, net asset value