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Aviva Funds European Property Fund - News
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Aviva Funds European Property Fund
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Fund
News
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Aviva European Property comment - Jun 06
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Tuesday, 29 August 2006
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Fund Manager Comment
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Market Review
In June, the EPRA/NAREIT Europe Index clawed back some of the losses of the previous month. EPRA UK strengthened 2.3%, EPRA France completed a bullish month up 5%, and EPRA Netherlands gained 2.5%. Volatility continues with property shares tracking equity markets in the last couple of months. During this period of higher volatility, we have noticed two important developments in the business. In the first place we are starting to see some discrimination and investor pressure in the IPO markets. Up until a few months ago, the flood of money seeking European opportunities did seem to be somewhat indiscriminate, and prepared to overlook higher risks. During last month however, some IPO's had to be postponed or were even cancelled because of their higher risk embedded in the profile of the company. The second important development was the initiation of share buy backs by Land Securities which is beneficiary for shareholders. We welcome this development for companies with low gearing and trading below NAV and hope that more companies will follow. Next to this we had some data points in the underlying market. While sentiment to UK retail property is rather negative, retail sales climbed strongly by 3.2% over the first five months of 2006 compared to the same period last year. The German office is improving according to Jones Lang LaSalle. The German office vacancy, after having peaked in 2005 at 11.3%, is to decline steadily to 8.7% in 2009. In Spain there was once again corporate activity. Grupo Immocoral offers EUR 63 per share to buy Inmobiliaria Colonial, and has agreed to buy a 39% stake from its major shareholder.
Fund Review
Selectively, we have invested cash in companies that have good growth prospects at good valuation like Derwent Valley (London offices) and Klepierre (retail). Because of rich valuation we have lowered our weighting in Inmobiliaria Colonial.
Outlook
We are positive on the outlook for the listed property sector. In the long term, we believe the real estate market is attractive for investors looking for diversification and stable dividend yields. In the short term fundamentals also appear to be positive with a stable retail sector and a recovering office market. We focus on strong quality names that are positioned well for an improvement in the property sector.
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Aviva European Property comment - Jan 06
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Wednesday, 15 February 2006
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Fund Manager Comment
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Market Review
In December the European Property Fund extended the positive performance that was made in November. Like last month, the biggest gains were made in the UK market (6.4%) where the UK government released details of the draft UK REIT legislation. During the last weeks of December capital inflow set also other European markets (3%) higher.
Fund Review
In December we invested money in France, Spain and Italy.
Outlook
We are positive on the outlook for the listed property sector. In the long term, the real estate market is attractive for investors looking for diversification and stable dividend yields. In the short term fundamentals are also positive with a strong retail sector and an improving office market. Due to high valuations however, we focus on strong quality names that are positioned well for an improvement in the property sector.
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Aviva European Property comment - Dec 05
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Wednesday, 4 January 2006
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Fund Manager Comment
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Market Review
After its fall in October, the European property market had a positive return in November. The biggest gains were made in the UK market (9%). After a longer period of relative underperformance investors got attracted by relative value and positive fundamental news. British Land and Land Securities published good results with bigger increases in NAV than expected and good developments office and retail rental market. On the other hand, the French property market traded down -1,6% on no significant news.
Fund Review
In November we invested money in high quality companies with relative value in France and the Netherlands.
Outlook
We are positive on the outlook for the listed property sector. In the long term, the real estate market is attractive for investors looking for diversification and stable dividend yields. In the short term fundamentals are also positive with a strong retail sector and an improving office market. Due to high valuations however, we focus on strong quality names that are positioned well for an improvement in the property sector.
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Aviva European Property comment - Nov 05
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Friday, 9 December 2005
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Fund Manager Comment
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Market Review
After 6 months of positive return, the European property sector suffered a poor October. This was led by the increase of inflation fears and the 10-year bond yield. Countries that had experienced the biggest gains during the last 6 months, showed the biggest drop: Spain -8%, France -9% while the UK was down 5,1%. However, fundamental news from the sector was positive. The French real estate companies KlTpierre and Gecina showed good results, while Rodamco surprised the market by its announcement that it will increase its development pipeline by eur 700m to eur 2,4 billion
Fund Review
In October we took advantage of the correction and invested cash in good quality companies.
Outlook
We believe there are still strong forces behind a long term positive outlook for the listed property sector. The inflow in the sector is still high coming from the investors looking for stable dividend yields. Fundamentals are also positive with a strong retail sector and an improving office market. Due to high valuations however, we focus on strong quality names that are positioned well for an improvement in the property sector.
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Aviva European Property comment - Sep 05
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Monday, 14 November 2005
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Fund Manager Comment
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Market Review
The market advanced at a steady pace in September. Most countries added 3-4%. Sweden recovered 5% after a very poor month in August. It was a quiet month with little news out and almost no corporate activity. The stocks were driven higher by capital inflow in a steady interest rate environment.
Fund Review
There was no activity in the portfolio in the month of September.
Outlook
We believe there are still strong forces behind a long term positive outlook for the listed property sector. The inflow in the sector is still high coming from the investors looking for stable dividend yields. Fundamentals are also positive with a strong retail sector and an improving office market.
Due to high valuations however, we focus on strong quality names that are positioned well for an improvement in the property sector.
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Aviva European Property comment - Aug 05
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Thursday, 22 September 2005
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Fund Manager Comment
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Market Review
The real estate sector had a reasonably good month in August. The MSCI Europe real estate index was up 2% over the month. Bond yields again came down. In Germany the bond yield went from about 3.3% to 3.1%. Investors keep on searching for yield which drives the sector. Inflow into the sector continues to be high.
Country-wise, Sweden was the big underperformer last month with the real estate stocks there down 15 to 20 percent. The reason for this big fall was profit-taking after the huge run-up in the previous months after the interest-rate cut by the Swedish central bank.
Fund Review
There was no activity in the portfolio in the month of August.
Outlook
We believe there are still strong forces behind a long-term positive outlook for the listed property sector. The inflow in the sector is still high, coming from investors looking for stable dividend yields. As long as the economy does not grow too fast and inflation does not increase too much bond yields will probably stay low and the sector should do fine, though in the short term the stocks look a bit over-extended after the recent run-up. Due to high valuations however, we focus on strong quality names that are well positioned for an improvement in the property sector. We are increasing our weightings in the UK because valuations are more reasonable there, looking at discounts/premiums to NAV and because the introduction of a REIT structure should be a positive factor.
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Aviva European Property comment - Jun 05
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Friday, 29 July 2005
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Fund Manager Comment
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Market review
The real estate sector had a very good month in June. The EPRA index was up 13, 5%including dividends. Bond yields stayed very low at around 3.20% in Germany, thus investors kept on searching for yield which drives the sector. Inflow into the sector is continuously high. Also, attendance at real estate conferences interest is still very high. Company specific news in the month of June: Metrovacesa completed its rights issue of 1 billion euro and Corio asked the CFO to leave the company.
Fund Performance
In the month of June we bought some Rodamco Europe, Land Securities, Slough Estates and Unibail shares with the cash receipts of the offer by Metrovacesa for Gecina.
Outlook
We believe there are still strong forces behind a long term positive outlook for the listed property sector. The inflow in the sector is still high, coming from the investors looking for stable dividend yields. As long as the economy does not grow too fast and inflation does not increase too much bond yields will probably stay low and the sector should do fine, though on the short term the stocks do look a bit over-extended after the recent run-up. However, due to high valuations we focus on strong quality names that are positioned well for an improvement in the property sector. We are increasing our weightings in the UK because valuations are more reasonable there looking at discounts/premiums to NAV and the positive influence of a new REIT structure.
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Aviva European Property comment - May 05
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Tuesday, 24 May 2005
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Fund Manager Comment
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Market review
The real estate sector was pretty flat in April, though a lot of companies like Radamco Europe went ex dividend. The sector outperformed the rest of the equity-markets which was down nearly 2%. Much of this was because the bond yield came down again because of some weak macro-economic data out of the US like the retail sales. The German 10-yr yield came down from 3,6% to 3,3%. Sector-specific news was pretty light. The main focus was on the possible delay of the German REIT strucure. Rumours went around that some tax-issues still need to be resolved and could take a little bit longer than expected. Other news was the well-flagged deal by Rodamco Europe to put their remaining French portfolio into a SIIC structure.
Portfolio
We reduced further our exposure to relative smaller companies that have performed well in the last months and invested the money in defensive real estate companies. We also took some money out of Gecina into Rodamco Europe.
Outlook
We believe there are still strong forces behind a positive outlook for the listed property sector. The inflow in the sector is still high coming from the investors looking for stable dividend yields. Also in the direct market there is strong interest for real estate assets. Due to high valuations however, we focus on strong quality names that are positioned well for a improvement in the property sector. Besides we focus on countries that have significant positive prospects in the near future coming from improving fundamentals.
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Aviva European Property comment - Apr 05
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Monday, 25 April 2005
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Fund Manager Comment
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Market review
March showed a small negative performance for the real estate sector. UK was hardest hit, loosing 4.5%. The long awaited UK REIT discussion paper was published and investors were disappointed by the lack of details. Another unpleasant surprise was that the Budget announced the end of Stamp Duty relief in disadvantaged areas.
France gained 0.55%, this performance was mainly helped by the bid for Gecina by Metrovacesa (Spanish residential company). The deal would be the second largest in the European real estate sector in six years.
The strongest performing market was Sweden (6,4%), where the office investor Kungsleden added 16% in March to its share price.
Portfolio
We reduced further our exposure to relative smaller companies that have performed well in the last months and invested the money in defensive real estate companies.
Outlook
We believe there are still strong forces behind a positive outlook for the listed property sector. The inflow in the sector is still high coming from the investors looking for stable dividend yields. Also in the direct market there is strong interest for real estate assets. Due to high valuations, however, we focus on strong quality names that are positioned well for an improvement in the property sector. Besides we focus on countries that have significant positive prospects in the near future coming from improving fundamentals.
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Aviva European Property comment - Mar 05
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Tuesday, 29 March 2005
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Fund Manager Comment
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Market review
Real estate traded sideways in February. During the first half of the month the sector was slightly up but sold off in the second part on the back of a rise in the swap rate curve. The UK (0,5%) suffered the most from the pullback while France (+2,8%) and Spain (4,8%) saw a stronger month on the back of improving fundamentals. Reporting French companies had strong property valuations. Besides, the results of Spanish companies showed strong growth in the housing development business while managements sounded optimistic on an improving outlook for the Madrid office market.
Fund Review
In the portfolio we increased our exposure to the UK at the cost of smaller positions that had performed well during the last months.
Outlook
Although the valuation has, in some instances, risen to high levels, we think there are still strong forces behind a positive outlook for the listed property sector. The inflow in the sector is still high coming from demand from investors for dividend yields. Also in the direct market there is strong interest real estate coming from the US and Australia real estate companies. Looking forward, rising interest rates may negatively impact share prices.
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Aviva European Property comment - Feb 05
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Wednesday, 23 February 2005
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Fund Manager Comment
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Market review
Real estate had another a positive month in January. The UK did not perform as strong (-1,4%) as the Continent due to experiencing a pullback after a strong December 2004. Performance in Continental Europe was lead by Spanish stocks that played catch up with the rest of Europe (+12%). Germany also performed well as hopes increased for the introduction of tax-transparent REIT structures in 2006.
Fund Review
In the portfolio we increased our exposure to Germany and European retail.
Outlook
Although the valuation has, in some instances, risen to high levels, we think there are still strong forces behind a positive outlook for the listed property sector. The inflow in the sector is still high coming from demand from investors for dividend yields. Also in the direct market there is strong interest real estate coming from the US and Australia real estate companies. Another positive factor is the introduction of tax-transparent REIT structures that have positive impact on valuations.
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Aviva European Property comment - Jan 05
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Tuesday, 25 January 2005
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Fund Manager Comment
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Market review
December was again a strong month for European real estate. UK performed relatively better than other continental markets (10.3%). After the discussion of the monetary policy committee for a reduction in interest rates, the market gained confidence that the property yield shift had further to run. The relative negative news flow that the introduction of tax-transparent REIT structures would be delayed until 2006 had almost no impact on prices.
The Continental European property share prices were more muted than the UK. The Netherlands had a return of 4.1%, Sweden 2.8% and France 6.1%. In France, Unibail enjoyed a 9% price increase ahead of its capital return next month.
Fund Review
In the fund, we increased our exposure in European retail by increasing our holding in Rodamco and Corio. We believe we can see a further yield shift in European retail after the upgrades we saw in the UK retail valuations.
Outlook
Although the valuation has, in some instances, risen to high levels, we think there are still strong forces behind a positive outlook for the listed property sector. The inflow into the sector is still high and is coming from investors' demand for dividend yields. The other positive factor is the ongoing M&A activity and "REIT-fever" or anticipation thereof.
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Aviva European Property comment - Dec 04
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Monday, 3 January 2005
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Fund Manager Comment
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Market review
The European market showed again a strong month in November. On one hand this was driven by positive news flow. In France (Epra France +6%), a new legislation was proposed which is going to offer a fiscal incentive for corporates to bring their real estates to listed properties (SIIC) or public funds. This law would provide existing listed property companies with a competitive advantage to acquire assets from corporations. The UK (Epra UK +7%) had a good month following the strong half-year results from property companies. Next to the good newsflow, real estate stock prices were also pushed upwards due to the strong money inflow from institutions. The value of the fund rose 5,4%.
Fund review
During the month we did not add another name to the portfolio. Due to the strong performance in the markets during the last months, we decided to increase our defensive exposure by buying Corio. Corio is a Dutch real estate company with a 4 bln Euro portfolio. The portfolio is focused on retail (70%), and geographically on the Netherlands (60%).
Outlook
Although the valuation has, in some instances, risen to high levels, we think there are still strong forces behind a positive outlook for the listed property sector. The inflow in the sector is still high coming from demand from investors for dividend yields. Other positive factor is the ongoing M&A activity and "REIT-fever" or anticipation thereof.
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Aviva European Property comment - Nov 04
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Monday, 22 November 2004
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Fund Manager Comment
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Market review
The European markets had a positive performance in October. Countries like French (4,5%), Sweden (+2,8%) and Netherlands (+2%) were able to show another strong month after the positive performance in September. The biggest move was recorded in Germany (+7,7%). The German index rose as the introduction of German tax transparent REIT like structure is looking more likely. The UK was among the weakest performers as investors are waiting for the pre-budget results that REITS are going to present in November. The value of the fund rose 1,4%.
Fund Review
During the month we added another name to the portfolio. We participated in the secondary offering of shares of Warehouses De Pauw. This Belgian company owns warehousing facilities along the important routes to the south. With this offering the free float will increase, and the dividend yield of around 8% provides a good valuation support.
Outlook
Although the valuation has, in some instances, risen to high levels, we think there are still strong forces behind a positive outlook for the listed property sector. For example the demand from investors for high (and sustainable) dividend yields and the positive impact from ongoing M&A activity and "REIT-fever" or anticipation thereof. Secondly, the gradual recovery of the economy should also be a positive (albeit lagged) for the property market. In the short term the retail sector should continue to outperform but we expect the office to begin to recover in 2005 and onwards.
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Aviva European Property comment - Oct 04
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Monday, 1 November 2004
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Fund Manager Comment
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Market review
The European listed property sector delivered another strong performance in the month of September. The Swedish market, which continues to consolidate, led the advance. Closely followed by the Spanish, French and Dutch markets. The Swedish market continues to consolidate The UK market, the largest in Europe, added another stable month. The second half of the month showed some profit takings, especially in individual names where the valuation recently has risen above the net asset value of the real estate portfolio. The value of the fund rose 1.8%.
Fund Review
During the month we added a new name to the portfolio. We participated in the secondary offering of shares of Finnish real estate company Citycon. This company is the market leader for shopping centre business in Finland.
Market outlook
Although the valuation has, in some instances, risen to high levels, we think there are still strong forces behind a positive outlook for the listed property sector. For example the demand from investors for high (and sustainable) dividend yields and the positive impact from ongoing M&A activity and "REIT-fever" or anticipation thereof. Secondly, the gradual recovery of the economy should also be a positive (albeit lagged) for the property market. In the short term the retail sector should continue to outperform but we expect the office to begin to recover in 2005 and onwards.
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Aviva European Property comment - Sep 04
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Friday, 17 September 2004
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Fund Manager Comment
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Market review
The European listed property sector delivered another strong performance in the month of August, outperforming both general equities and bonds. The French market led the advance, followed by the Swedish and Italian market. Especially office developer Beni Stabili rose on speculation of a takeover bid. Despite disappointing results from residential developer AM, caused by delays in some projects, the Dutch listed property market performed well. The UK also provided robust results. The value of the fund rose 2.2%.
Fund Review
During the month we added to our existing holdings in two French names in the portfolio. We also slightly increased our weighting in the UK by adding to our holding in Hammerson. This company has good growth prospects driven by the completion of their development portfolio and the letting of vacant space.
Market outlook
Contrary to earlier expectations, 2004 looks set to become the fifth year in a row that the listed property sector outperforms general equities. This can change if a sudden and significant rise of rates - which we don't expect at present - occurs. The recovery of the economy should be a positive (albeit lagged) for the property market. In the short term the retail sector should continue to outperform but we expect the office to begin to recover in 2005 and onwards. The prospect of further introductions of the REIT status, the tax legislation that avoids double taxation for property, adds to the attractiveness of property stocks.
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Aviva European Property comment - Aug 04
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Tuesday, 14 September 2004
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Fund Manager Comment
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Market review
The strong performance displayed by the European listed property sector continued in the month of July. Valuations are generally still reasonable and the yield spread between property dividends and interest rates is attractive. Investors in property shares seemed reassured on interest rates and the persistence of the yield spread. The trend in published company results so far is on average that occupancy rates are stabilising and that profits come out in line or higher than expected. The value of the fund rose 1.2%, mainly driven by Spanish, Italian and Dutch stocks in the portfolio.
Fund Review
During the month we added a new name to the portfolio by participating in an equity offering of SociTtT de la Tour Eiffel. Given the demanding valuation and the increased vacancy, we sold our position in Dutch company Nieuwe Steen Investments.
Market outlook
Contrary to earlier expectations, 2004 looks set to become the fifth year in a row that the listed property sector outperforms general equities. This can change if a sudden and significant rise of rates - which we don't expect at present - occurs. The recovery of the economy should be a positive (albeit lagged) for the property market. In the short term the retail sector should continue to outperform but we expect the office to begin to recover in 2005 and onwards. The prospect of further introductions of the REIT status, the tax legislation that avoids double taxation for property, adds to the attractiveness of property stocks.
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Aviva European Property comment - Jul 04
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Wednesday, 11 August 2004
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Fund Manager Comment
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Market review
After the recent volatility in the market for listed property stocks, the market continued on the recovery that started in the second half of May. Valuations are still reasonable and the yield spread between property dividends and interest rates is still attractive. Investors in property shares seemed reassured on interest rates and the persistence of the yield spread.
The month of June also saw a resurgence of corporate activity. In the portfolio Inmobiliara Colonial made a bid on French property stock SociTtT FonciFre Lyonnaise at a higher price than the market anticipated. This and other bids confirmed that institutional investors are still ready to pay a good price for qualitiy companies. The result was a 3,9% rise of the value of the fund mainly driven by Dutch, Italian and French stocks in the portfolio..
Fund Review
During the month our strategy has not changed much. We try to buy our preferred names if cash is available.
Outlook
The outlook for property stocks is still strong. Although it is still early to assess which way rental values in the office market will go, much depending on general economic activity, the yield spread offers investors a nice opportunity. The prospect of further introductions of the REIT status, the tax legislation that avoids double taxation for property, adds to the attractiveness of property stocks.
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Aviva European Property comment - Apr 04
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Friday, 4 June 2004
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Fund Manager Comment
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Market Review
The European property market decreased across the broad on the back of the US Reit market where investors feared a rate increase of the Fed soon and increasing bond rates on the back of an appreciating economy. The recovering economy would mean increasing inflation (which in itself is not bad for property seen the inflation indexed rents in most leases) and the increasing interest rates. These increasing rates are in the short term not stimulative for highly leveraged property companies. In total the fund decreased 3.1% in value.
Fund Review
During the month we have kept the portfolio in general in tact. We have made some small changes and have made the portfolio less rate sensitive by choosing for stocks with a low level of leverage or with management who have lengthened the duration of their debt portfolio in the low rate environment.
Outlook
In the short term the interest rate fear might cause the property market to be volatile. Longer term we still think the recovering economy is good for especially the office market across Europe. We also favor those countries that have set up an effective tax legislation to avoid double taxation for property companies.
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Aviva European Property comment - Mar 04
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Wednesday, 19 May 2004
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Fund Manager Comment
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Market Review
The European property sector still sees high money inflows. Investors looking for high yielding assets with a low correlation with the general equity market keep putting money in the sector. Dividend payments have started and this is traditionally a strong period for property companies. The fund increased for the 12th consecutive month. In total the fund increased by 2.5%.
Fund Review
In terms of fund activity we continued to increase the weighting in both France and the UK due to the stronger than expected numbers that came out from property companies and the fact that the outlook for the UK is starting to improve. We decreased the weighting in the Netherlands, as valuations of some of the companies are becoming high. We remain focused on those countries that will or are expected to introduce a tax efficient real estate structure.
Outlook
Looking forward, we will slowly start increasing our weighting in the office sector. Once the European economy picks up again and job growth returns, we will focus more on the office sector to capture this upswing in capital growth. On a country basis, we will focus on those countries, like France, UK and Italy, that are expected to make or making property companies tax efficient (i.e. to avoid double taxation).
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Aviva European Property comment - Feb 04
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Wednesday, 24 March 2004
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Fund Manager Comment
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Market Review
Most of the property companies announced their annual results last month. The first thing that surprised was the fact that, in line with the new SIIC status of the French property companies, the French companies increased their dividends to levels well above expectations of analysts. Unibail for example now has a dividend yield of close to 5%. Also in Spain the results that came out surprised on the up side. Most companies also do development and this part of their business was very strong. Lastly, the inflow of money from investors looking for a defensive and high yielding asset class continued which was good for stock prices. In total the fund increased 6.2% in value during the month.
Fund Review
In terms of fund activity we continued to increase the weighting in both France and the UK due to the stronger than expected numbers that came out from property companies and the fact that the outlook for the UK is starting to improve. We decreased the weighting in the Netherlands, as valuations of some of the companies are becoming high. We remain focused on those countries that will or are expected to introduce a tax efficient real estate structure.
Outlook
Looking forward, we will slowly start increasing our weighting in the office sector. Once the European economy picks up again and job growth returns, we will focus more on the office sector to capture this upswing in capital growth. On a country basis, we will focus on those countries, like France, UK and Italy, that are expected to make or making property companies tax efficient (i.e. to avoid double taxation).
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Aviva European Property comment - Jan 04
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Monday, 8 March 2004
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Fund Manager Comment
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Market Review
In January the fund started the year as it had ended it, with a positive performance. The first companies reported their annual results. These results were either in line with analysts' expectations or above. Unibail for example surprised with a higher than expected dividend. Instead of the 3 euro expected they will pay out 3,50 euro per share. At the current stock price a yield of over 4.5%. The battle for Canary Wharf continued with the bid from one of the parties being increased to 270p per share. This shows us that there is still a lot of interest in the real estate sector. In total the fund increased 1.9% during the month.
Fund Review
In terms of fund activity we started to increase the weighting in both France and the UK due to the stronger than expected numbers that came out from property companies and the fact that the outlook for the UK is starting to improve. We decreased the weighting in the Netherlands, as valuations of some of the companies are becoming high. We remain focused on those countries that will or are expected to introduce a tax efficient real estate structure.
Outlook
Looking forward, we will slowly start increasing our weighting in the office sector. Once the European economy picks up again and job growth returns, we will focus more on the office sector to capture this upswing in capital growth. On a country basis, we will focus on those countries, like France, UK and Italy, that are expected to make or making property companies tax efficient (i.e. to avoid double taxation).
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Aviva European Property comment - Dec 03
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Tuesday, 27 January 2004
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Fund Manager Comment
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Market Review
In December the fund ended a very successful year in style. The fund increased 3.6% during the month. Since the launch in January last year the fund has increased 22.4% in value, outperforming the adjusted EPRA index by 3.3%. The main performers were the smalcap property funds across Europe. The consolidation that has started in the UK for example is expected to continue in 2004. This has brought small cap companies into the spot light.
Fund review
In terms of fund activity we kept our weightings more or less stable during the month. We decreased some of the names on valuation but no major shifts were made. We are focussing on high dividend paying companies and look to profit from the new tax legislation
Outlook
Looking forward, we will slowly start increasing our weighting in the office sector. Once the European economy picks up again and job growth returns, we will focus more on the office sector to capture this upswing in capital growth. On a country basis, we will focus on those countries, like France, Sweden and Italy, that are expected to make or making property companies tax efficient (i.e. to avoid double taxation).
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Aviva European Property comment - Nov 03
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Thursday, 18 December 2003
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Fund Manager Comment
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Market Review
In November the fund had yet another month of positive return making it the eight consecutive month of positive performance. In total the fund increased 4.4% during the month. Since the launch in January the fund has performed over 18 per cent. The good performance was spread across the sector. The largest countries, France and the United Kingdom both performed well. The continuos inflow of money from investors betting on a continuation of the multi year rally of the property sector was very positive for the stocks.
Fund review
In terms of fund activity we kept our weightings more or less stable during the month. We decreased some of the names on valuation but no major shifts were made.
Outlook
Looking forward, we will slowly start increasing our weighting in the office sector. Once the European economy picks up again and job growth returns, we will focus more on the office sector to capture this upswing in capital growth. On a country basis, we will focus on those countries, like France, Sweden and Italy, that are expected to make property companies tax efficient (i.e. to avoid double taxation).
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Aviva European Property comment - Oct 03
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Tuesday, 25 November 2003
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Fund Manager Comment
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Market Review
The fund had its seventh consecutive month of positive performance. In total the fund increased 0.7% during the month. Since the launch in January the find has performed over 13%. The Swedish property stocks had a very good month. Lehman Brothers Real Estate Partners' has teamed up with Swedish private equity firm Ratos to bid for property company Tornet, On the back of this news other Swedish property companies appreciated as well; the UK also had a good month. Possible further consolidation is still a driver for positive performance. Canary Wharf lagged during the month. The bids from consortia were lower than expected and at the moment it is far from certain that any of the bidders will be successful.
Fund review
In terms of fund activity the fund manager's have decreased the weighting in the United Kingdom after the good performance of the last few months. The fund manager's have increased the weighting of France by taking up Fonciere Lyonnaise.
Outlook
Looking forward, the fund manager's will slowly start increasing the funds weighting in the office sector. Once the European economy picks up again and job growth returns, the fund manager's will focus more on the office sector to capture this upswing in capital growth. On a country basis, the fund manager's will focus on the countries (like France, Sweden and Italy) that are expected to make property companies tax efficient, ie, to avoid double taxation.
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Aviva European Property comment - September 2003
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Tuesday, 21 October 2003
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Fund Manager Comment
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Market Review
The fund had its sixth consecutive month of positive performance. The French companies had the best performance as the new tax legislation that became effective September 1st will increase nav and dividend yields and has decreased the discounts to nav. On a stock basis rumours that Sophia, the French property company, and Canary Wharf, the British property company, are being targets for acquisition caused both companies to increase substantially in value. In total the fund increased 0,4% in value, making the total return of the fund since the launch more than twelve percent.
Fund review
In terms of fund activity the weightings within the different countries have remained approximately the same during the month. We have decreased the weighting in the Netherlands on the basis of valuation. We have increased our weighting in the United Kingdom slightly by taking up Canary Wharf.
Outlook
Looking forward, we will slowly start increasing our weighting in the office sector. Once the European economy picks up again and job growth returns, we will focus more on this sector to capture the upswing in capital growth. On a country basis, we will focus on countries like France, Sweden and Italy that are expected to make property companies tax efficient (i.e. to avoid double taxation).
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Aviva European Property comment - June 2003
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Monday, 11 August 2003
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Fund Manager Comment
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Market Review
The European property fund extended, albeit at a slower pace, its gains in June. The French and Belgium markets had the best performance last month. Stock specific was Canary Wharf the leader. The company indicated that it had received interest from parties that want to take the company private which spiked its price. In total the fund increased 1,5% in value.
Fund Review
In terms of fund activity we have remained the weightings within the different countries roughly the same during the month. The strong performance in Canary Wharf was used to sell this position which thus decreased or weighting in the U.K.
Outlook
Looking forward, we will slowly start increasing our weighting in the office sector. Once the European economy picks up again and job growth returns, we will focus more on the office sector to capture this upswing in capital growth. On a country basis, we will focus on those countries, like France and Italy, that are expected to make property companies tax efficient (i.e. to avoid double taxation).
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