Investment strategy

SG Hiscock’s investment approach is based on a disciplined valuation methodology with regard for the fundamental outlook. We use quantitative value inputs (ranked in our proprietary value model) which are combined with judgemental analysis of fundamental factors and market sentiment. In essence, this means the portfolios will generally show value characteristics but because of the fundamental overlays, these will rarely be extreme.

Key beliefs that underpin our investment approach include:

• Prices move towards fair value over time
• A ‘property-like view’ is essential for correct valuation
• A low turnover approach is consistent with direct property
• A bottom-up approach captures valuation inefficiencies
• On-the-ground research is critical in gaining true insights
• REITs with superior fundamentals tend to outperform