Fact sheet: Picton Property Income

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
PROPERTY
Sector
IT Property - Direct UK
Fund type
Real Estate Investment Trust
Primary aim
INCOME
Why Money Observer Rates Picton Property Income

New for 2017. A self-managed trust aiming for enhanced returns

This trust won Money Observer's Best Large Trust award in 2016. Its performance has picked up impressively since it became a self-managed trust and changed its name in 2012.

Its chief executive since the change has been Michael Morris, but he was also involved with the trust for several years when it was managed by Dutch group ING Investment Management.

Prior to the EU referendum, the trust benefited from the strong recovery in property, especially given its focus on London and the South East, but it had already started reducing its central London exposure before the vote.

Morris believes that self-management has brought three key advantages. First, it creates a strong alignment between the management team and the shareholders, through a long-term incentive plan. Second, it has cut costs; and third, it has encouraged a more entrepreneurial spirit.

Among the ways in which the team has improved its returns in recent years is by refurbishing the spaces it has acquired to secure better rental income, refinancing borrowing to lower interest costs, and selling off smaller properties to focus on fewer larger ones.

Although cautious in his outlook, Morris believes opportunities are likely to arise as a result of Brexit uncertainties and points out that there will always be opportunities to exploit mispricing, especially in more volatile markets.

He believes the team's focus on income, overweight position to the industrial sector and strong occupier focus will stand the trust in good stead in current conditions.

3 Year Performance
Fund Performance37.3%
Average of Rated Funds Group22.2%
Sector Performance20.3%
Fund information
Fund name
Picton Property Income Ltd Ord
Fund manager company
Picton Capital Limited
Fund type
Real Estate Investment Trust
Fund manager
  • Picton Capital Limitedsince 24/10/2005
Accolades
Winner - Best Large Trust
Fund objective
The Company’s aim is to provide shareholders with an attractive level of income together with the potential for capital growth.
Benchmark
  • No Specified Index
Investment style
No data available.
Investment method
Mixed
Quick stats
1 Year return
11.8%
1 Year rank in sector
4/11
Sector
IT Property - Direct UK
Yield
4%
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
1.24%
Fund size
£458m
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
97
Mid price
84.8
NAV
?Net asset value. The NAV per share may be higher or lower than the share price, which in turn is trading at either a discount or a premium to NAV.
88.6
Discount/Premium
?When the market price of an investment trust’s shares is less than the net asset value (NAV) per share then it is trading at a discount to NAV. A trust’s shares are on a premium when they trade at a higher price than the NAV.
-4.29
Gearing
?Investment trusts have the ability to borrow money which they invest with the aim of generating a higher return than the cost of the loan. An ungeared trust has a figure of 100. A figure of 110 would represent a trust with 10% gearing.
100
Top in this sector
Fund name1 Year
Stand Life Inv Prop Inc Tst14.5%
Aew UK REIT PLC Ord GBP0.0112.7%
Schroder REIT12%
Picton Prop Inc Ltd11.8%
Custodian REIT PLC Ord 1P10.3%
...more in IT Property - Direct UK

Performance snapshot

Holdings snapshot

  • South East UK44.2%
    UK31.3%
    London12.9%
    Not Specified11.6%
  • Industrials40.7%
    Offices - Property35.7%
    Retail23.6%
  • Property100%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund0.5%0.6%1.5%11.8%37.3%175.5%
Sector-0.6%1.6%1.5%9.1%20.3%85.1%
Rank within sector5 / 139 / 138 / 134 / 111 / 91 / 6
Quartile2nd3rd3rd2nd1st1st
Calendar performance
 YTD - 20182017201620152014
Fund2.3%15.1%12.3%13.8%21.9%
Sector0.7%8.9%5.2%7.8%16.5%
Rank within sector4 / 131 / 111 / 112 / 92 / 6
Quartile2nd1st1st1st2nd
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
3.57
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
1.33
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
0.84
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
11.43
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
7.76
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
0.71
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.57
Price movement
52 week high88
52 week low79.25
Current bid price84.5
Current offer price85
Current mid price84.8
Region
1South East UK44.2%
2UK31.3%
3London12.9%
4Not Specified11.6%
Industry sector
1Industrials40.7%
2Offices - Property35.7%
3Retail23.6%
Asset type
1Property100%
Individual holdings
No data available.
Management
Fund manager group
Picton Capital Limited
Fund manager company
Picton Capital Limited
Fund type
Real Estate Investment Trust
Fund objective
The Company’s aim is to provide shareholders with an attractive level of income together with the potential for capital growth.
Benchmark
  • No Specified Index
Investment style
No data available.
Investment method
Mixed
Fund manager
NameSinceBiography
Picton Capital Limited24/10/2005
Compliance
AIC Member, Offshore
Domicile
No data available.
Fund for sale in
United Kingdom, Guernsey, Offshore
Picton Property Income Ltd Ord
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price88.6
CurrencyGBX
Price updated31/12/2017
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeNNDP
Data provided by

The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.

This information is sourced from our partner Financial Express. We believe the data to be correct however you should take care in using any information.

You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.