10th Anniversary 2005–2015

2014
Winner

Boutique investment manager

Charity Times Award

James Thornton, Fund Manager
Receiving the Charity Times Award, Boutique Investment Manager for 2014

An excellent niche product in a growth market. A sustained high investment performance, with fund managers sensitive to charities' particular investment needs around maximum return and socially responsible fund criteria.”

Charity Times Award 2014, Judging Panel

10th Anniversary

2005–2015

James Thornton, Fund Manager
Receiving the Charity Times Award, Boutique Investment Manager for 2014

Fund performance and financials

Strong performance in total return but importantly a growing income stream for investors

Fund growth

Strong growth in Gross Asset Value (GAV) providing further diversification to the Fund

£350m
GAV

56%

Increase since 2013

Source: MCIM

Investors

Continuing to attract new equity flows

672

Underlying charities

16%

Increase since 2013

£60.7m

Total new subscriptions in 2014

Source: MCIM

Performance

PITCH
Total return

9.1%

2013

16.7%

2014

Source: AREF

6.8%

Yield for rolling 12 months

3.8%

Growth in income (earned)

Source: MCIM

Borrowings

Conservative use of borrowing to enhance the distribution yield

17.1%

Loan to value

Source: MCIM

Property portfolio

During 2014 a repositioning of the portfolio with a focus on lot sizes of £5-15m

£74m

Value transactions
2013

£125m

Value transactions
2014

15

New assets
2013

11

New assets
2014

Asset management initiatives reducing the void rate

5.0%

Vacancy rate
2013

3.2%

Vacancy rate
2014

Source: MCIM

In 2014 property has proved attractive relative to other asset classes on both a…

Total return basis, and…

12 months returns (2014)

1. 10Y Gilts, 2. FTSE 100, 3. AREF/IPD All Balanced Property Funds Index (ABPFI)

For its attractive yield

Yields (end Dec 2014)

1. 10Y Gilts, 2. FTSE 100, 3. AREF/IPD – Yield for 2014 as % of last NAV, 4. PITCH yield for 2014 as % of last NAV per Mayfair Capital

Portfolio of high quality covenants with 91% of tenants low or minimal risk as rated by Dun & Bradstreet (D&B)

91% of tenants have a low/minimal credit risk rating

Portfolio by covenant rating

Note: Analysis excludes the USAF and WELPUT holding

Weighted unexpired lease profile of 9.1 years

Portfolio by unexpired lease profile

Note: Allowing for tenant breaks

Investment strategy

  • Assets purchased 2014
  • Other assets
  • Area of investment focus
  • 1. Clerkenwell
  • 2. Doncaster
  • 3. Deansgate Manchester

PITCH achieves significant industrial letting in North West in 2014 reducing void rate

Note: excludes USAF

Mayfair Capital focuses on a number of investment themes, three of which are:

1. Creative sector

Clerkenwell

Clerkenwell

Set to benefit from creative industry demand and the effects of Crossrail. An added value purchase with strong income growth potential following refurbishment.

2. E-commerce

Doncaster

Doncaster

The rise of e-commerce and a shortage of quality, well specified logistic/distribution property is expected to drive performance.


3. Infrastructure

Deansgate Manchester

Deansgate Manchester

The North West region is benefiting from a number of infrastructure projects with Manchester expected to be the major beneficiary of this. It is our top pick amongst the UK ‘big 6’ cities.

Governance

After external consultation and a full review process we implemented a ‘new’ responsible property investment policy for the Fund in 2014. The 5 key principles of the policy are:

Principles for responsible investment

1
Environmental stewardship

2
Social responsibility

3
Compliance

4
Engagement

5
Continuous improvement

Mayfair Capital is a member of IIGCC and we participate in GRESB.

IIGCC
GRESB

Contact

For further information please contact Victoria Conrath at Mayfair Capital.