The M&G UK Property Fund invests directly in commercial properties in the UK and is well diversified, investing in the retail, office, industrial and alternative sectors of the market.
The fund aims to outperform the All Balanced Funds component of the AREF/IPD UK Quarterly Property Funds Index by 50bps, net of fees, on a rolling three-year basis.
Property differs from financial markets because it is a tangible asset. However, because investors will consider it against a range of other investments, we believe it still deserves to be analysed and assessed in the same way as other asset classes.
Our experienced fund management team exploits imperfections in the market using disciplined analysis and appraisal. We assess a property’s fair value based on our internal analysis of its yield and rental prospects. Our investment professionals also strengthen their research by drawing on the extensive local market knowledge of our national team of surveyors.
The active management of assets can deliver added value, so we pay particular attention to the management and development of each site and lease provisions, such as the terms for rent reviews.
The fund is managed within a disciplined framework by controlling risk without stifling individual flair. In this context, the investment process is designed to be robust under different economic conditions.