Designed to invest in the next generation of real estate securities, the VT Gravis UK Listed Property (PAIF) Fund marked its fifth anniversary on 31 October 2024.
The Fund has returned -2.29% since launch, outperforming its index by more than 16 percentage points and exhibiting lower volatility than its peers*. It has also produced a steady and growing income, yielding £1,762.53 from an initial £10,000 investment**. The current trailing dividend yield of the Fund is 4.84% - the highest in its sector***.
Over the past year, as the macro-environment has plateaued and started to look more positive for the sector, it has rebounded almost 20% in 12 months***.
More than simple outperformance
The Fund has faced a number of challenges since its launch, including the COVID pandemic and the fastest period of rising interest rates in decades. It has, however, rewarded investors with more than just outperformance of the index.
High tax-efficient dividend yield: The income produced by the Fund is growing not fixed and compares favourably with the top yielding Funds in the IA Direct Property and IA Sterling Corporate Bond Sectors. It is higher than all of the Funds in the IA UK Gilt sector***.
Inflation-beating income growth – the Fund’s dividend has grown by 6.7% per annum, exceeding inflation which has annualised 5.4% over the same period*. The Fund has delivered the highest natural income since launch against its UK listed peer group and ETF***.
Daily liquidity: Importantly for investors seeking daily liquidity in their portfolios, unlike open ended direct property funds owning physical assets, the Fund has never gated, never issued a material uncertainty statement and has met all redemption requests. All holdings are listed on the London Stock Exchange and trade daily.
Low cost: With a capped OCF at 0.7% it is also the cheapest actively-managed pure UK-focused Fund available in its sector***. The manager has also invested in 25 equity placings which has generated savings of 145 bps, equivalent to 0.29% bps per annum.
Access to the future of real estate: The Fund targets four key mega trends—ageing population, digitalisation, generation rent, and urbanisation - and avoids retail and regional offices.
Matthew Norris, manager of the VT Gravis UK Listed Property (PAIF) Fund commented: “It’s been an event-filled five years for the UK property sector, but with the challenges have come plenty of opportunities. By focusing on the next generation of real estate and looking at what property the UK will need in the future, we’ve been able to outperform the index and deliver an attractive yield for investors.
“The outlook for the sector is now improving daily. With rents rising, supply outstripping demand, and attractive valuations, I believe the UK REIT market is poised for a potential re-rating, supported by increasing M&A activity and changing demographics that drive demand.”
*Source: Gravis, five years to 31 October 2024, cumulative total returns using MSCI UK IMI Core Real Estate GBP and broader MSCI Europe IMI Core Real Estate (Net) GBP indices and A GBP Acc Fund share class.
**Source: FE Analytics, 6 Nov 2019 to 30 Sep 2024.
***Source: FE Analytics, 31 October 2024. Investors in the PAIF structure benefit from the ability to receive the majority of distributions free of tax.
Important information
This press release is issued by Gravis Advisory Limited (“GAL” or the “Firm”)), which is authorised and regulated by the Financial Conduct Authority. GAL’s registered office address is 24 Savile Row, London, United Kingdom, W1S 2ES. The company is registered in England and Wales under registration number 09910124.
VT Gravis UK Listed Property (PAIF) Fund (the “Fund”) is a sub-fund of VT Gravis Real Assets ICVC, which is a non-UCITS retail scheme and an umbrella company for the purposes of the OEIC Regulations. The Fund is a Property Authorised Investment Fund (“PAIF”). Valu-Trac Investment Management Limited is the Authorised Corporate Director of VT Gravis Real Assets ICVC and GAL is the investment manager of the Fund.
Any decision to invest in the Fund must be based solely on the information contained in the Prospectus, the latest Key Investor Information Document and the latest annual or interim report and financial statements.
GAL does not offer investment advice and this press release should not be considered a recommendation, invitation or inducement to invest in the Fund. Prospective investors are recommended to seek professional advice before making a decision to invest.
Your capital is at risk and you may not get back the full amount invested. Past performance is not a reliable indicator of future results. Prospective investors should consider the risks connected to an investment in the Fund, which include (but are not limited to) exchange rate risk, market risk, counterparty risk, inflation and interest rate risks and the risks of investing in real estate and related industries. Please see the Risk Factors section in the Prospectus for further information.
This press release has been prepared by GAL using all reasonable skill, care and diligence. It contains information and analysis that is believed to be accurate at the time of publication but is subject to change without notice.
This press release is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. Any recipients outside the UK should inform themselves of and observe any applicable legal or regulatory requirements in their jurisdiction.
