Investment Philosophy
Purchasing for income yield and income growth.
The portfolios that we advise on are generally higher yielding than the market average. We do not look to sell or churn portfolios to create performance, as our portfolio returns are protected by their income yields.
This provides a good defensive hedge in any downturn in the property cycle. In an upturn market, the portfolios that we advise on benefit from a combination of a strong running yield and increased rental growth prospects to produce attractive total returns.
Investment Style
Creating value through astute
stock selection.
Utilising a combination of both a top-down research driven approach to sector and geographical allocations and a bottom-up approach for individual stock selection.
Our focus is to create value through astute stock selection. This approach is combined with a careful regard to risk and a detailed and thorough methodology in our due
diligence process.
Research
In-depth research provided by Colliers International’s research teams.
Our in-house research team produces property return forecasting models that cover the main sectors of the market including rental growth, capital growth and
total returns.
This capability is utilised at the macro level, in setting the context for the economy and property investment in general; at the property sector level, in identifying the prospects for each of the individual property sectors in the light of trends in the economy; at the regional level, via regional variations in property occupier and investment performances; and at the micro level, in analysing individual investment opportunities,
capturing specific local or building related factors.
Portfolio Construction
Optimising funds through a dynamic portfolio construction process.
The quarterly updated return forecasts for rental growth, yield movement and total returns are provided annually and over five yearly time horizons. These forecasts form the basis of our strategy towards sector weightings and overall portfolio construction.
Appropriate sector weightings are set as part of an annual strategy review and continually monitored as capital inflows and outflows and valuation changes occur throughout the year.
Risk & Asset Management
Continually adding value through intensive asset management.
We continually look to add value to our clients’ portfolios through intensive asset management. This includes the re-gearing of leases, lease surrenders and renewals, maximising rent reviews and lease renewals and minimising voids. We will also consider redevelopment, extension or refurbishment opportunities as well as change
of use or other planning
related initiatives.
Regular and formal reviews in the form of quarterly asset management meetings for each client are held.
