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					Aviva Investors Property Funds ICVC
Short Report
For the period ended 31 March 2009
Table of contents
Aviva Investors Asia Pacific Property Fund          2
Other Information                                   5
Report and Financial Statements                     5
Paper Information                                   5
Company Information                                 5

                                             AVIVA INVESTORS PROPERTY FUNDS ICVC SHORT REPORT FOR THE PERIOD ENDED 31 MARCH 2009   1
Aviva Investors Asia Pacific Property                                    Fund Manager’s Report                                                         The fund manager is devoting considerable attention to
                                                                                                                                                       asset-management initiatives that aim to maximise operational
Fund                                                                     Total performance
                                                                                                                                                       efficiencies in the direct property performance. For example, minor
                                                                                                                                                       upgrading works have been carried out in the seed property to
                                                                                                                                                       improve the lighting and colour scheme.
The Fund was launched on 10 June 2008.                                   During the period under review, the Fund’s I share class produced a
                                                                         total return (after the deduction of charges and non-recoverable              At present, the Fund does not contain any real estate securities.
                                                                         expenses) of -10.19%1 whereas the Fund’s A share class produced a             However, the fund manager does believe that there is some value in
Fund Objective
                                                                         total return of -13.60%1.                                                     this market, especially in some Real Estate Investment Trusts (REITs) in
                                                                                                                                                       the more developed Asian markets.
The investment objective of the Fund is to seek income and long          The returns from the two components of the Fund (before charges
term capital appreciation.                                               and non-recoverable fund expenses) were as follows:                           The fund manager may look to increase the Fund’s holdings in real
                                                                                                                                                       estate securities in the coming months.
                                                                         Direct property: -17.18%2.
Investment Approach                                                      Cash instruments/money held on deposit: 3.22%2.
                                                                                                                                                       Economic Background for Asia Pacific Real Estate
In order to achieve its objective the Fund will principally invest in    Fund Profile and Portfolio Review
                                                                                                                                                       The macro-economic environment in the Asia Pacific region
immovable property, with an emphasis on commercial property,
                                                                                                                                                       continued to deteriorate over the period covered by this report. The
and/or property related transferable securities the issuers of which     The net assets of the Fund as at 31 March 2009 were £78.9m. The
                                                                                                                                                       slump in demand for exports and sluggish domestic demand
are domicilied in, or have significant operations or interests in, the   asset split was 88% in direct property and the rest in cash and other
                                                                                                                                                       continue to drag down the region’s economies. The recession
Asia Pacific region and Australasia. The Fund may also invest in units   assets.
                                                                                                                                                       forecast for many countries in the region in 2009 is now expected to
in regulated and unregulated collective investment schemes, money
                                                                         The Fund made one property acquisition in Singapore on 3 July 2008            be deeper than was initially expected. Whilst synchronised stimulus
market instruments, deposits, cash and near cash and derivatives.
                                                                         and there were no sales of property-related assets during the period          packages across the region have, to a certain extent, slowed the
Derivatives may be used for the purposes of efficient portfolio
                                                                         under review.                                                                 sharp falls in economic output, market conditions for real estate
management. Full details of the Investment Policy can be found in
                                                                                                                                                       investment continue to deteriorate.
the Prospectus.
                                                                         In the medium to long term, the fund manager will continue investing
                                                                         cash principally in direct property. The target weightings are: cash          The outlook for the region’s retail markets remains difficult, as
                                                                         c.10%, direct property c.70% and c.20% in real estate-related assets          evidence of increased headwinds in consumption becomes more
Risk profile                                                                                                                                           apparent. Rising unemployment and declining household wealth are
                                                                         (such as listed real estate securities). The Fund is not yet mature, so the
                                                                         allocation to direct property as a proportion of the total Fund will          two of the factors that have curtailed retail growth and retailers’
Property and security prices are subject to market fluctuations.                                                                                       margins have narrowed considerably over the past six months. With
                                                                         come down to the target level as the Fund grows in size.
Property valuations are a matter of the independent valuer’s opinion                                                                                   retailers in capital preservation mode, there will be significant
rather than fact. Where funds are invested in property, investors may    Real estate values in the region continue to face downward pressure.          downside pressure on rents in the near term.
not be able to switch or cash in their investments when they want        In the coming 12 months, there is likely to be an opportunity for
because property in the fund may not be readily saleable. If this is     equity-only buyers of direct property (i.e. buyers that are not reliant       The prolonged weakness in the financial and business sectors has
the case we may defer their request to switch or cash in their shares.   on debt financing) to acquire assets at attractive prices. We believe         impacted the office occupier market with widespread downsizing
When funds invest in overseas markets, the value will go up and          that forced sellers of property will appear in the market and, with           the dominant theme for the past two quarters. Whilst new office
down in line with movements in exchange rates as well as changes         leveraged buyers continuing to be constrained by the ongoing                  supply continues to come on stream, demand has fallen off the cliff
in the value of the fund’s holdings. The yield from a property may be    problems in the debt markets, competition for these assets is likely          in most markets. The markets that have been hardest hit are those,
affected by tenant failure or availability of supply in the sector or    to be less intense than has generally been the case in recent years.          like Hong Kong and Singapore, that are most dependent on banking
micro-location.                                                          The Fund manager would like to be in the position to exploit these            and financial services sectors. Considering that the economic
                                                                         buying opportunities if and when they arise. Clearly, market timing           situation is unlikely to turn around quickly, office rents are likely to
                                                                         will be crucial.                                                              trend downwards for the reminder of 2009.

                                                            AVIVA INVESTORS PROPERTY FUNDS ICVC SHORT REPORT FOR THE PERIOD ENDED 31 MARCH 2009                                                                               2
Aviva Investors Asia Pacific Property                                                       Fund Facts                                                                                           Total Return
Fund (continued)                                                                            Ex-dividend and Distribution Dates
                                                                                                Ex-dividend Dates                   Distribution Dates                                           Share Class A*                                                              (13.60)%

                                                                                                31 March                            31 May                                                       Share Class I+                                                              (10.19)%
Conditions have also deteriorated in the industrial sector. External                                                                                                                             * Source: Aviva Investors (based upon midday values), period from 8 September 2008
                                                                                                30 September                        30 November
trade flows across the region have contracted sharply amidst a ‘halt’                                                                                                                              (date of launch) to 31 March 2009.
                                                                                                                                                                                                 + Source: Aviva Investors (based upon midday values), period from 10 June 2008 (date of
in global demand. Industrial output in both China and Japan has                             Please note that the Fund now distributes twice a year.
                                                                                                                                                                                                   launch) to 31 March 2009.
fallen at a record rate3 in the last quarter. The combination of cost                       Total Expense Ratio1                                                                                 Top Ten Holdings
sensitive occupiers and weak global demand means rents will                                                                                                                 As at 31.03.09
                                                                                                                                                                                                 As at 31 March 2009
continue to experience significant downward pressure until global
                                                                                                Share Class A                                                                       1.85%
trade bottoms out.                                                                                                                                                                               Commerce Point - Singapore                                                   88.38%
                                                                                                Share Class I                                                                       1.05%
                                                                                                The total expense ratio reflects the total of all costs associated with operating the Fund,      Portfolio Breakdown
Prospects for Asia Pacific Real Estate                                                          including the ACD`s periodic charge and is presented as a percentage of the average net
                                                                                                assets over the period.
The deteriorating macro-economic environment has affected real estate                                                                                                                            Singapore Property                                                           88.38%
transaction volumes in Asia as concerns about a longer and deeper                           Portfolio Turnover Rate2
                                                                                                                                                                                                 Total Investments                                                            88.38%
global downturn hit sentiment towards all asset classes. Activity by                                                                                                       As at 31.03.09
                                                                                                                                                                                                 Net Other Assets                                                             11.62%
transaction value in the region was down by 70%4 from the previous                              Fund                                                                             (25.26)%
                                                                                                                                                                                                 Net Assets                                                                  100.00%
quarter with overall volumes 44%4 lower in 2008 compared to 2007.                           2
                                                                                                The portfolio turnover rate reflects the total of security purchases and sales, less the total
Whilst credit conditions are showing tentative signs of improvement,                            of share issues an cancellations, presented as a percentage of the average net assets
                                                                                                over the period.
equity for real estate remains scarce across the region.                                                                                                                                         Highest & Lowest Prices
                                                                                            Net Revenue Distributions                                                                            Share                 Calendar                      Highest*                   Lowest*
Moving forward, in the face of the difficult credit market, we believe                                                                                                           Pence per       Class                 Year                           price (p)                price (p)
it likely that some REITs (most notably Australian Listed Property                                                                                                                   Share
                                                                                                                                                                                                 Class A               2008++                          100.00                    94.74
Trusts) and private equity real estate managers are about to enter a                                                                                                              31.05.09                             2009**                           98.00                    83.20
consolidation phase. Given this may cause some distressed selling, it
                                                                                                Share Class A                                                                       0.5750       Class I               2008+                           104.71                    98.47
is therefore not inconceivable that value will start to appear in the
                                                                                                Share Class I                                                                       1.5691                             2009**                          102.75                    87.51
market where long term fundamentals remain relatively intact.
Whilst we are beginning to see some good value opportunities                                Net Asset Value            3                                                                         * valued at mid-market prices
                                                                                                                                                                                                 ** up to 31 March 2009
emerge, it is clearly too early to be an active or aggressive real estate                                                                                                                        + From 10 June 2008 (date of launch)
                                                                                                                                 Pence per               Pence per
investor in the region. Given the market is probably 30 to 50%                                                                       Share                   Share                               ++ From 8 September 2008 (date of launch)

through the current cyclical correction, we remain cautiously                                                                     31.03.09               at Launch                 Change

selective as we can expect more compelling widespread risk-adjusted                             Share Class A                        82.41                 100.0*                (17.59)%
value to emerge from late 2009 onwards.                                                         Share Class I                        85.92                 100.0+                (14.08)%
                                                                                             Valued at bid-market values.
Any opinions expressed are those of the fund manager. They should                           * As at 8 September 2008.
                                                                                            + As at 10 June 2008.
not be viewed as a guarantee of return from an investment in the
trust. The content of the commentary should not be viewed as a
recommendation to invest.
  Source: Lipper Hindsight (unit price, bid to bid, net income reinvested at dividend pay
  date) as at 31 March 2009
  Source: Aviva Investors, as at 31 March 2009
 Source: Factset as of 27 February 2009
 Source: DTZ January 2009

                                                                               AVIVA INVESTORS PROPERTY FUNDS ICVC SHORT REPORT FOR THE PERIOD ENDED 31 MARCH 2009                                                                                                                       3
Aviva Investors Asia Pacific Property                                          Calendar Year Performance
Fund (continued)                                                                   Total Return                                               %


Net Revenue Record                                                                 Share Class A*                                           (0.25)

                                                                                   Share Class I+                                           4.02
The revenue record table below shows the net distribution rates per
calendar year on a payment date basis for an investment made on                    2009**

10 June 2008 (8 September 2008 for Share Class A).                                 Share Class A                                           (13.38)

                                                                                   Share Class I                                           (13.66)
                                             Net income per     Per £1,000
Share Class           Calendar Year                 Share (p)   Invested (£)
                                                                                Source: Aviva Investors (based on midday values)
                                                                               * From 8 September 2008 (date of launch)
Class A               2008++                          0.0000          0.00     + From 10 June 2008 (date of launch)
                                                                               ** Up to 31 March 2009
                      2009*                           0.5750          5.75

Class I               2008+                           0.0000          0.00     The value of an investment in the Aviva Investors Asia Pacific
                      2009*                           1.5691         15.69     Property Fund and any revenue from it can go down as well as up.
* up to 31 May 2009 (the interim distribution payment date).
                                                                               You may not get back the original amount invested. Past
+ From 10 June 2008 (date of launch)                                           performance is not a guide to future performance.
++ From 8 September 2008 (date of launch)

                                                                AVIVA INVESTORS PROPERTY FUNDS ICVC SHORT REPORT FOR THE PERIOD ENDED 31 MARCH 2009   4
Other Information                                                          Company Information                                                      Investment Manager
                                                                                                                                                    Aviva Investors Global Services Limited
More information about the activities and performance of the Aviva         Authorised Corporate Director                                            No.1 Poultry
Investors Property Funds ICVC for this period can be obtained from                                                                                  London EC2R 8EJ
the Authorised Corporate Director.                                         Aviva Investors UK Fund Services Limited
                                                                           No.1 Poultry                                                             With effect from 29 September 2008, the name of the Investment
Any future returns and opinions expressed should not be relied upon        London EC2R 8EJ                                                          Manager changed to reflect the rebrand of Morley to Aviva
as indicating any guarantee of return from investment in the funds.                                                                                 Investors. The Investment Manager changed its name from Morley
                                                                           With effect from 29 September 2008, the Authorised Corporate             Fund Management Limited to Aviva Investors Global Services Limited.
                                                                           Director (ACD) changed its name from Morley Fund Services Limited
The information contained within this document should not be               to Aviva Investors Fund Services Limited.                                Aviva Investors Global Services Limited is a member of the
construed as a recommendation to purchase or sell stocks.                                                                                           Investment Management Association and is authorised and
                                                                           With effect from 2 March 2009, the ACD business was transferred
                                                                                                                                                    regulated by the Financial Services Authority. The ultimate parent
                                                                           to Aviva Investors UK Fund Services Limited. The Asia Pacific Property
As sub-funds are not legal entities in their own right, if the assets of                                                                            company of Aviva Investors Global Services Limited is Aviva Plc.
                                                                           Fund changed its name to the Aviva Investors Asia Pacific Property
a sub-fund are insufficient to meet its liabilities, theoretically any
                                                                           Fund.                                                                    The Investment Manager has appointed Aviva Investors Asia Pte. Ltd
such shortfall might have to be met from the assets of the other
                                                                           The ACD is owned 50% by Norwich Union Life Holdings Limited and          to provide investment advisory services in relation to the Aviva
sub-funds of the Company.
                                                                                                                                                    Investors Asia Pacific Property Fund:
                                                                           50% by Aviva Investors Holdings Limited, both of which are
The Shareholders are not liable for the debts of the Aviva Investors       Companies incorporated in the United Kingdom and are within the          Aviva Investors Asia Pte Ltd
                                                                           Aviva group of Companies.                                                3, Anson Road
Property Funds ICVC.
                                                                                                                                                    #07-01 Springleaf Tower
                                                                           The ACD is a member of the Investment Management Association             Singapore 079909
                                                                           and is authorised and regulated by the Financial Services Authority.
Report and Financial Statements
                                                                           Directors of the Authorised Corporate Director
Copies of the half yearly long form report and financial statements
                                                                                                                                                    Citibank International Plc
are available free of charge by calling us on 0800 073 1734, or by         M Hodges
                                                                                                                                                    Citigroup Centre
writing to us at:                                                          C Riley (resigned on 31 December 2008)                                   Canada Square
                                                                           J Clougherty (appointed 28 October 2008)                                 Canary Wharf
Aviva Investors UK Fund Services Limited                                   S Boylan (appointed 5 January 2009)                                      London E14 5LB
PO Box 9475                                                                A Dromer (appointed 5 January 2009)
                                                                                                                                                    Authorised and Regulated by the Financial Services Authority.
Chelmsford                                                                 A Seymour-Jackson (appointed 20 January 2009)
Essex CM99 2UZ                                                             T Orton (appointed 26 January 2009)
                                                                           M Buckley (appointed 23 April 2009)
Telephone calls may be recorded for training and monitoring                N Nicandrou (resigned on 27 April 2009)                                  Ernst & Young LLP
purposes.                                                                                                                                           1 More London Place
                                                                           Administrator and Registrar                                              London SE1 2AF
Paper Information
                                                                           International Financial Data Services Limited                            Standing Independent Valuer (for the Aviva Investors Asia
The paper used to produce this document is produced from trees             IFDS House                                                               Pacific Property Fund only)
grown in sustainable forests (for every 2 trees felled, 3 trees are        St Nicholas Lane
                                                                                                                                                    UK Address:                               Singapore Address:
planted). The paper is totally chlorine free.                              Basildon
                                                                                                                                                    CB Richard Ellis Limited                  6 Battery Road
                                                                           Essex SS15 5FS
                                                                                                                                                    St Martin’s Court                         32-01 Singapore 049909
                                                                                                                                                    10 Paternoster Row
                                                                                                                                                    London EC4M 7HP
                                                              AVIVA INVESTORS PROPERTY FUNDS ICVC SHORT REPORT FOR THE PERIOD ENDED 31 MARCH 2009                                                                        5
Aviva Investors UK Fund Services Limited
No. 1 Poultry, London EC2R 8EJ
United Kingdom

Tel +44 (0)20 7809 6000
Fax +44 (0)20 7489 7940

                                                    Aviva Investors is a business name of Aviva Investors UK Fund Services Limited.
                                           Registered in England No. 1973412. Authorised and regulated by the Financial Services Authority.
                                                       Registered address: No. 1 Poultry, London EC2R 8EJ. An Aviva company.

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