www.savillsim.com
CHARITIES PROPERTY FUND ANNUAL MEETING - 2019 www.savillsim.com 2019 CONTENTS
ECONOMIC ASSET STRATEGY THE FUND APPENDICES OVERVIEW MANAGEMENT
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 2 2018 HEADLINES 24,000 -$50 billion?
-40% £723 £63 million million
£99 $123 million billion
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 3 2018 – IN THE RED
S & P 500 FTSE 100 -12% 3,000 -7% 8,000
2,900 7,800
7,600 2,800
7,400 USD 2,700 GBP 7,200 2,600 7,000 2,500 6,800
2,400 6,600
2,300 6,400 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Emerging Market Equity Index Bitcoin
1,300 18,000 -17% -73% 1,250 16,000
1,200 14,000
1,150 12,000
USD 1,100 10,000 USD 1,050 8,000
1,000 6,000
950 4,000
900 2,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Source: The Daily Telegraph, Dec 2018
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 4 PROPERTY YIELDS, BOND YIELDS AND THE BASE RATE
12 Yield Spread All Property
10 Retail Office Industrial UK Base Rate 8 10-year government bond yield
6 %
4
2
0 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18
Source: MSCI 2018
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 5 NEW CONSTRUCTION ORDERS (DEVELOPMENT ACTIVITY)
8
7
6
5
4 £ Billions £
3
2
1
0
Source: ONS December 2018 *Including retail, office & industrial
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 6 UK PROPERTY CYCLES
160
150
140
130 MSCI UK All Property Capital Growth Index 1989-2007 120
110
100
90
80
70
60 MSCI UK All Property Capital Growth Index 2007-2018 50 0 12 24 36 48 60 72 84 96 108 120 132 144 156 168 180 192 204 No. of months
Source: MSCI
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 7 STRATEGY
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 8 A HIGHLY RESILIENT QUALITY PORTFOLIO
1,948 83% 45% investors negligible or in Bath, low risk Brighton, tenants Oxford, Cambridge, Harrogate and London 3.0% 12.3 vacancy years rate average unexpired lease term 32% of properties 36% sub £5 million fixed or RPI 47% linked income distribution & alternatives NO NO NO NO stamp duty performance investment in debt land tax fees other payable property NO funds NO NO management withholding derivative fees added to tax products capital
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 10 STRATEGY
Transport & infrastructure improvements Placemaking – focus on winning Build critical mass towns and cities
Limiting physical Maintain a tail of obsolescence – 60% small assets for of the portfolio has liquidity obvious alternative uses
Smaller average size industrial units = wider Keep voids to a tenant pool minimum
Fund developments, but only to access Target less fashionable quality and benefit lot sizes from a discount Maintain a long lease expiry profile
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 11 BUILDING CRITICAL MASS - BRIGHTON
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 12 PLACEMAKING - BATH
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 13 LEASE EXPIRY PROFILE
Years ALTERNATIVES Years RETAIL 25 14
12 20
10 15 8 10 6
4 5
2 ALL PROPERTY Years 0 0 14 CPF MSCI CPF MSCI 12
10
8
6 OFFICE Years 4 Years INDUSTRIAL 8 10 2 7 8 6 0 CPF MSCI 5 6 4
3 4
2 2 1
0 0 CPF MSCI CPF MSCI
CPF to lease expiry MSCI to lease expiry CPF assuming all breaks exercised MSCI assuming all breaks exercised Source: MSCI, as at Q3 2018
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 14 DIVERSIFICATION & LIQUIDITY
5%
Largest 9 assets: 30% of Portfolio Value
4%
3%
Largest 20% of assets: 50% of Portfolio Value
2%
Smallest 30% of assets: 10% of Portfolio Value
1%
0%
A ‘long tail’ provides liquidity Source: Savills Investment Management (December 2018)
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 15 ESG & RESPONSIBLE INVESTMENT
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 16 THE FUND
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 17 INVESTOR CATEGORISATION
22 Medical / 70 Health Hospices Schools Environmental / Conservation / Animal Welfare Education
Arts / Culture 15 The Charities 16 Property Fund Cathedrals
1,948 investors Universities
Religious Organisations 14
General Services (Armed Charitable Forces) Relief of Poverty
Source: Savills Investment Management (January 2019)
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 18 LARGE & DIVERSIFIED
1,400.0
1,200.0
1,000.0
800.0
600.0 NAV (GBP)Millions NAV
400.0
200.0
0.0 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18
Source: Savills Investment Management (December 2018)
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 19 RELIABLE & STABLE
8
7
6
5
4
3 5.57 5.84 5.26 5.46 5.47 5.28 5.45
2 Distribution Payment (Pence per unit)(Penceper PaymentDistribution
1
0 2012 2013 2014 2015 2016 2017 2018
Source: Savills Investment Management (January 2019)
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 20 FUND LEVEL PERFORMANCE – TOTAL RETURN
18 The Charities 17.3 17.2 Property Fund 16
14 All Balanced Property Funds
12 12.3 12.5 11.2 10 10.6 10.0 10.2 9.7 9.1 8 8.8
7.9 % per annum per % 7.2 7.3 6 6.4 6.5 6.4
4 Outperformance over 3.0 2.8 2 1, 3, 5 &10 0.2 years 0 2012 2013 2014 2015 2016 2017 2018 3 years 5 years 10 years (pa) (pa) (pa)
Source: AREF / MSCI (December 2018)
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 21 The quality, experience and long serving nature of the management team understand the needs of their specific unitholder base and have constructed a strong debt free quality portfolio thoughtfully and with consideration to the future and not “just the present. In a sector which has in the past exhibited stress from certain participants the Charities Property Fund stands tall. ECONOMIC OVERVIEW STRATEGYAidan Kearney,THE FUND CIO, The HealthASSET MANAGEMENT Foundation APPENDICES” 22 ECONOMIC OVERVIEW OVERVIEW STRATEGY THE FUND FUND ASSET MANAGEMENT MANAGEMENT APPENDICES 23 GEOGRAPHICAL WEIGHTINGS
0.4% Scotland
17.4% The North
19.5% Midlands & Wales
31.0% 31.7% Greater London The South
Source: Savills Investment Management (December 2018)
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 24 RETAIL
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 25 DIVERGING FORTUNES
140
120
100
80
60
Rebased Rebased Share Price (Jan2018 = 100) 40
20
0
Source: Macrobond
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 26 AVERAGE WEEKLY RETAIL SALES
£8.0
£7.0
£6.0
£5.0
£4.0 £ Billions £
£3.0
£2.0
£1.0
£- Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18
Rolling average weekly physical store sales Rolling average weekly internet sales
Source: Savills, ONS
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 27 A MIXED BAG
15%
10%
5%
0%
-5% Total Quarterly Sales Growth* YoY Growth*Quarterly Sales Total
-10%
Lidl
Aldi
DFS
B&Q
B&M
Asda
Primark
Dunelm
Matalan
Next Plc Next Halfords
Screwfix
H&MUK H&MUK
Morrisons UK Game Tesco UK Tesco
WHSmiths
Moss Bros Moss
John Lewis John
Mothercare
Sainsbury's
Topps Tiles Topps
Debenhams
CardFactory Travis Perkins Travis
Source: Savills Research; FSP; retailer reports (Note*: sales performance for the most recent quarterly period in 2018)
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 28 UK ONLINE PENETRATION
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0% Books & Electricals Music & Clothing & All Retail Furniture & Homewares DIY & Health & Food & Stationery Video Footwear Furnishings Gardening Beauty Grocery
Online Online 2022 Offline Source: Global Data
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 29 THE RETAIL PORTFOLIO
20 years to expiry
85% index linked
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 30 THE RETAIL PORTFOLIO
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 31 THE RETAIL PORTFOLIO
RETAIL WAREHOUSING
LAND AVERAGE RENTS HOLDING PER SQ FT
72 acres AVERAGE UK LOT SIZE £14.15 AVERAGE LEASE LENGTH £11.3 million London & South East £19.30 11.8 years
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 32 OFFICES
33
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 33 LONDON’S POPULATION PROJECTION
LONDON POPULATION UK POPULATION DISTRIBUTION
11,000
10,500
10,000 It took 27 years for London‘s population to 9,500 increase by 1.0 million people
9,000
8,500 The next 1.0 8,000 million people are 7,500 forecast to take 11 years Population (thousands) Population 7,000 The 6,500 next 1.0 million people 6,000 In 30 years, London took lost 1.4 million people only 9 5,500 years
5,000
1901 1906 1911 1916 1921 1926 1931 1936 1941 1946 1951 1956 1961 1966 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016 2021 2026 2031
Sources: Great Britain Historical Geographical Information System, Oxford Economics (2018) Source: Marc Khachfe
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 34 £130 BILLION OF NEW INFRASTRUCTURE IS PLANNED
Crossrail 2
Walthamstow
Brent Cross Crossrail 1
High Speed 2 Brentwood
Gallions Reach Silvertown
Paddington Ealing North Greenwich Surrey Quays Canary Wharf Silvertown tunnel Abbey extension Wood Heathrow Airport Northern line extension
Croydon Transport Infrastructure
Regeneration areas
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 35 AND ‘EVERYONE’ ISN’T MOVING TO FRANKFURT…
60
50
40
30
20
10 Average hourly labour costs in Euros in costs labour hourly Average
0
Italy
Malta
Spain
Latvia
EU 28 EU
Ireland
France Austria
Poland
Cyprus
Croatia
Finland
Estonia
Norway
Belgium
Sweden
Bulgaria
Portugal
Hungary
Slovakia
Slovenia
Romania
Denmark
Lithuania
Germany
Netherlands
Luxembourg
Czech Republic Czech United Kingdom United
Source: Eurostat, Savills Investment Management
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 36 LONDON 5* REVIEW
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 37 7.7m 14.0m 25.6m 62.0m entries/exits entries/exits entries/exits entries/exits
2007 2017 2007 2017
Source: Public Transport Service Planning, Transport for London (January 2018)
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 38 THE SMITHSON, EC1
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 39 THE SMITHSON, EC1
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 40 INDUSTRIAL & DISTRIBUTION
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 41 INDUSTRIAL RENTAL VALUE GROWTH
10
8
6
4
2 % 0
-2
-4
-6
-8
CPI London Inner South East Midlands & Wales North & Scotland
Sources: MSCI & ONS (December 2018)
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 42 GROWTH IN E-COMMERCE
Internet sales as a % of total retail sales Total online spend
25 120
100 20
80 15
60
10 Billion £ % of total of % total sales retail 40
5 20
0 -
Source: ONS Source: Retail Economics
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 43 INCREASING SUPPLY?
UK supply and vacancy Speculative development
Supply Area (sq ft) Vacancy rate 100 25% 12
90 10 80 20%
70 8 60 15%
50 (millions) 6
ft
Sq Vacancy rate Vacancy
Sq ft (millions) Sq ft 40 10% 4 30
20 5% 2 10
0 0% 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 Q1
Source: Savills Research
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 44 THE INDUSTRIAL PORTFOLIO
MANUFACTURING & DISTRIBUTION
TOTAL FLOORSPACE
3.5m sq ft +
AVERAGE UNIT SIZE
60,000 sq ft
AVERAGE UK RENT AVERAGE LEASE AVERAGE CAPITAL PSF LENGTH VALUE
£4.70 per sq ft 7.7 years £83 per sq ft
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 45 ALTERNATIVES
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 46 THE ALTERNATIVES MARKET
Alternatives deal volumes 2008 - 2018 2018 % shareholder return
Shareholder return -60 -50 -40 -30 -20 -10 0 10 20
18 16.3 Secure Income Reit 15.7 16 15.5
14 Gcp Student Living 11.9 12.3 12 Safestore Holdings Ord Shs 10 8.7 8 Big Yellow Group PLC
£ Billion £ 6 5 3.6 Shaftesbury Reit Ord Shs 4 2.8 1.7 2 0.7 Hammerson PLC 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Capital & Regional Reit Ord Shs
Intu Properties Reit Ord Shs
Source: JLL Source: Macrobond
Long, secure & index linked
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 47 ACCOMODATION
Cambridge Brighton
Poole Oxford
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 48 SALES
2015 2018
Price Net Initial Yield Price Net Initial Yield £14.8 million 8% £20 million 5.8%
DERBY Unexpired lease term: 26 years Let to Jurys Inn; Capital Growth: 35% / £5.15m Unexpired lease term: 29 years Ungeared IRR 19% pa
Price Net Initial Yield Price Net Initial Yield £13.6 million 6.1% £17 million 5%
Weighted unexpired lease term 17 years
Let to Travelodge, the Gym Group & PLYMOUTH four leisure tenants; Capital Growth: 26% / £3.55m Weighted unexpired term: 19.3 years Ungeared IRR 14% pa
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 49 PURCHASES
Basingstoke Belvedere, SE London
• Newly developed industrial building; • Modern industrial buildings; • Weighted unexpired term of 25 years (15 to break); • Weighted unexpired term of 8.3 years; • 100% of rent index linked; • Significant reversionary potential; • Acquired for £10 million / 5.9% • Acquired for £9 million / 5.3%
“Prominent sites in supply constrained locations, underpinned by high land values”
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 50 PURCHASES
Ilkley Altrincham
• Newly constructed office building; • Newly refurbished office building; • Weighted unexpired term of 14 years; • Prominent site in affluent location; • 67% of rent index linked; • Unexpired term of 15 years (10 years to break); • Acquired for £6 million / 7.6% • Acquired for £5 million / 7.0%
“High yields, low rents, alternative uses”
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 51 ASSET MANAGEMENT
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 52 RENT REVIEWS, NEW LEASES & LEASE RENEWALS
£2.36 £24,500 23 million per annum per annum
£1.06 26 million per annum
10 +10.4% breaks not exercised, +56% protecting £1.3 million per annum
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 53 RENT REVIEWS, NEW LEASES & LEASE RENEWALS
Hotel London Office London office +£130,086 pa +43% £170,810 pa five yearly RPI indexation lease renewal +£75,000 pa Lease renewal
Industrial +43% Supermarket + £135,336 pa new letting +£93,897 pa annual indexation
Automotive
+£105,731 pa Retail Warehouse five yearly fixed uplifts South East office +35% +£264,343 pa ten year lease renewal five yearly RPI indexation
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 54 ASSET MANAGEMENT
Basingstoke Cowper Street, London
Fund relet following expiry of lease to Debenhams. Let to Fund exercised mutual break option given property was Leverton Clarke on new 15 year lease. underrented to current tenant.
Previous Rent: £317,000 pa Previous Rent: £255,000 pa New Rent: £452,336 pa New Rent: £425,810 pa % increase: +43% % increase: +67%
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 55 KEY STATISTICS – LAST 5 YEARS
NAV Fund total return No. of properties 10.6% pa +58% +127%
£488m +18% Net new investment Average unexpired lease term Leases benefiting from fixed or indexed increases £235m +37% Income distributed +36% Investor base +45% +31% No. of tenants Unit Price
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 56 APPENDICES
Supplementary market and fund information
The Charities Property Fund team
The Advisory Committee
Contact details
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 57 THE FUND –SECTOR WEIGHTINGS
Retail Offices Industrial Alt’s Cash 30%
25%
20%
15%
10% % fund of % 5%
0%
CPF December 2018 All Balanced Property Funds December 2018
Purposeful bias towards Industrials and Alternatives
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 58 THE CHARITIES PROPERTY FUND TEAM
▪ Harry de Ferry Foster is the Fund Director for The Charities Property Fund with responsibility for all aspects of the management of the Fund and for ensuring the Fund fulfils its objectives. He has held this post for the 11 years. ▪ Day to day, Harry’s role encompasses setting the strategic framework of the portfolio, equity raising, investor relations and marketing, sourcing property investments and investing new subscriptions and managing the Fund team. ▪ Harry is also co-head of Savills Investment Management UK business and has been with Savills Investment Management for 16 years. He sits on the UK Management Committee, the Investment and Risk Committee and the Portfolio Management Committee. ▪ Harry started his career at Cushman & Wakefield (formerly Healey & Baker) and occupied a variety of investment agency roles before assisting with the establishment of their Fund Management team in 1998 and worked on a number of pension fund and charity accounts, including The Wellcome Trust and Guy’s and St Thomas’ Charitable Foundation. ▪ Harry is RICS qualified and has 20 years experience in property investment and fund management. Harry completed the Investment Management Certificate (IMC) exams in 2003.
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 59 THE CHARITIES PROPERTY FUND TEAM
▪ Angy Benitz is the Fund Manager for the Charities Property Fund. Angy's primary role involves asset acquisition and disposal together with adopting portfolio and fund management initiatives. Angy is also a member of Savills Investment Management’s Investment & Risk Committee. ▪ Angy joined Savills Investment Management in September 2010 from DTZ where he spent 8 years in a variety of advisory roles with an emphasis on investment agency representing a range of clients on acquisition and disposal transactions of commercial real estate within the UK. ▪ Angy graduated from Oxford University in 2001 before joining DTZ and becoming RICS qualified in 2005.
▪ Jim Garland joined the Savills Investment Management investment team in 2009 where he worked as an analyst in research and strategy contributing to the creation of house views, fund reporting and ad hoc research assignments. Jim moved across to the Charities Property Fund team in 2014. As an Assistant Fund Manager, Jim supports the Fund Manager and Fund Director with asset management initiatives, acquisitions and disposals. ▪ Prior to joining Savills Investment Management Jim worked at a healthcare strategy and marketing consultancy. ▪ Jim graduated from UCL in 1999 with a degree in Biotechnology and gained an MSc in Real Estate at Cass Business School in 2009. Jim is RICS qualified and has completed the Investment Management Certificate (IMC) exams.
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 60 THE CHARITIES PROPERTY FUND TEAM
▪ Maggie McQuaid is Assistant Fund Manager for the Charities Property Fund. Her day to day role involves asset acquisitions and disposals together with the execution of asset management initiatives. ▪ Maggie graduated from the University of Ulster in 2011 with a degree in Property Investment & Development. She worked for MSCI for over a year following her degree after which time she joined the Savills Graduate Scheme in 2013. She spent time in hotel valuations, retail investment, property management, commercial valuations and Savills Investment Management prior to becoming RICS qualified in October 2015. Following qualification she worked in a hotel valuation advisory role at Savills prior to joining Savills Investment Management in October 2017.
▪ Natalie Chrimes is the Fund Finance Manager, responsible for financial reporting, debt and cash management, and ongoing tax compliance of the Fund. ▪ Natalie joined Savills Investment Management in December 2016 from Ernst & Young where she worked in the real estate and construction audit practice. ▪ Natalie is a chartered account (ACA) with the Institute of Chartered Accountants in England and Wales and graduated from the University of Warwick.
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 61 THE CHARITIES PROPERTY FUND TEAM
▪ Lucy MacEwan joined Savills Investment Management in 2017. She is responsible for the marketing of CPF and Investor Relations. Her day to day role involves investor communications, fund dealing, reporting and event management. She is also responsible for the ongoing marketing of the Fund, including updating the website and presentation support. ▪ Lucy graduated from University of Exeter in 2016 with a degree in BA Anthropology.
▪ Susannah Corpe joined Savills Investment Management in February 2018 and is responsible for Investor Relations for a number of UK and pan-European Savills Investment Management funds and segregated mandates. ▪ Susannah is the Operations Manager for the Charities Property Fund, providing an overview of the dealing process as well as project work for the Fund. Prior to joining Savills Investment Managers Susannah was Investor Relations Executive with Henderson Global Investors, within the Equity Partners Investor Relations team. ▪ At Henderson Susannah led Investor Relations for existing Private Equity clients invested in Asian Growth Equity, PFI Secondary Infrastructure and Fund of funds. Before joining Henderson, Susannah was a member of BlackRock’s Private Equity team within BlackRock Alternative Advisors, the firm’s Fund of Funds platform. ▪ Based in London, Susannah co-ordinated marketing and investor services across EMEA and Asia Pacific Regions. Susannah studied German and French Studies at Portsmouth University.
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 62 ADVISORY COMMITTEE
Malcolm Naish (Chair) is a member of the Advisory Panel and Board at Greenwich Hospital. Since June 2012 he has also been Director of Aurora Europe Property Fund and Chairman of Target Healthcare Reit Ltd. Prior to this Malcolm was Director of Real Estate at Scottish Widows Investment Partnership with overall responsibility for the management of 14 property funds having a combined value in excess of £8 billion.
Previously Malcolm was Director and CEO of the FSA Regulated entity at DTZ Investment Management and Co-founder, Director and Shareholder at Fountain Capital Partners. He began working as a general practice surveyor at GVA Grimley in 1971 before moving to Jones Lang LaSalle in 1981.
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 63 ADVISORY COMMITTEE
Wilf Stephenson joined Oriel College, Oxford in the summer of 2005 as Treasurer and Bursar. Immediately prior to this he was Group Treasurer of Chelsfield plc, a large UK property company.
His previous career included a period as Group Treasurer of Grosvenor, the international property group owned by the Duke of Westminster and his family, and senior roles at two oil companies, Mobil and Amerada Hess. At Oriel, he is responsible for the management of the College's endowment, its day to day finances, buildings, catering and other service functions. His team work closely with the Provost and fellows to create, within their historic buildings in the centre of Oxford, the finest possible living environment for students.
Chris Hills is currently the Chief Investment Officer of Investec Wealth & Investments, one of the UK’s leading firms of asset managers for charities and high net worth individuals. In that role, he is the architect of its approach to portfolio management, its internal research department and its investment policy committee. Chris was formerly a director of Baring Fund Management, where he managed a range of institutional mandates and was a member of its strategic investment team. He joined Investec in 1995 in his present capacity.
Chris is also a director of Invesco Income Growth plc (on which he chairs the Management Engagement Committee), Henderson Opportunities Trust plc and the Association of Investment Companies. He provides counsel on investment matters to a number of charity organisations.
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 64 ADVISORY COMMITTEE
Paul Taylor has over 25 years of property fund management experience as Head of UK Direct Property Investment at Schroder Property Investment Management and prior to that working at Merrill Lynch Investment Managers. Most recently Paul held the position of Director of Property at St John’s Hospital, Bath. Within this role Paul had overall responsibility for the property that made up their endowed estate and which generates the income that allows the charity to continue to provide its almshouse accommodation and its provision of grants. Paul brings to the role a personal enthusiasm for historical architecture with a particular interest in Georgian buildings.
Nick Downer has been Bursar of Selwyn College, Cambridge since August 2002. He also serves on the Finance Committee of the University, as a Trustee of the Cambridge Colleges' Federated Pension Scheme and is a former Chairman of the University Board of Scrutiny. Prior to joining Selwyn, he spent over 20 years as an investment banker advising international corporate clients on initial public offerings, privatisations and other forms of debt and equity capital raising.
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 65 ADVISORY COMMITTEE
Richard Robinson is the Investment Director of the Paul Hamlyn Foundation, a £550m endowment fund which was established by the publisher Paul Hamlyn in 1987. It helps young people, principally in the UK, achieve their potential and operates in the areas of performing arts, education and social justice. Previously Mr Robinson was head of Charities and Foundations at Schroders plc, one of the largest fund managers in the UK. He began working in investment management in 1982 and has a masters degree in Theology from Oxford University.
Andrew Chapman has developed a portfolio of roles including working part-time as the CIO for The Health Foundation and membership of the Global Investment Advisory Committees for T.Rowe Price, the Coller Capital Investment Advisory Committee, and the Charity Property Fund Investment Advisory Committee. He is also a non-exec director of Quiznos and Steadfast Financial and a Special Advisor to Campbell Lutyens. Andrew first became a fund manager in 1978. In 1984 he was appointed the Deputy Investment Manager at the British Aerospace Pension Fund. From 1991 to 2000 he was the CIO at United Assurance plc. Andrew joined Hewitt Associates as a Senior Consultant in 2001 before being appointed as the first in-house Pension Investment Manager for the John Lewis Partnership.
66
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 66 ADVISORY COMMITTEE
Aidan Kearney is the Chief Investment Officer of The Health Foundation, an independent charity committed to bringing about better health and health care for people in the UK. He is responsible for the management of the Foundations endowment fund having spent over 35 years in the capital markets most recently at Aberdeen Asset Managers where he sat on the Group Regulatory Board as well as the Aberdeen Solutions Global Strategy Group and Alternatives Strategy Committee, and prior to that at Credit Suisse and Artemis Investment Management. He is an experienced multi-asset fund manager understanding investment processes across a broad spectrum of asset classes, alongside portfolio construction and the application of risk management.
Alan Fletcher has held a variety of roles in the Church of England both at local and national church level, and in 2014 started his second 6 year term as a member of the Church of England Pensions Board where he chairs the Housing Committee and is a member of the Investment Committee. Alan has significant experience in financial services and investment management having been Managing Director of a Leicester based pensions brokerage in the 1980’s and Chairman of the Neville James Group of Companies . Alan has been a non-executive director on the Group Board of the Paragon Group of Companies plc since February 2009 and is a member of the Risk Committee, Nominations Committee and Audit Committee and Chair of the Remuneration Committee. He is also a Trustee Director of the defined benefit pension scheme for Paragon.
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 67 CONTACT
The Charities Property Fund For property related information: Harry de Ferry Foster c/o Savills Investment Management 33 Margaret Street For fund and unit holder related information: Lucy MacEwan London W1G 0JD Tel: 020 3107 5439 Fax: 084 5409 1281 E-mail: [email protected]
IMPORTANT NOTICE
This Report is issued by Savills Investment Management (UK) Limited, registered in England number 03680998, which is authorised and regulated by the Financial Conduct Authority Number 193863 and is a subsidiary of Savills Investment Management LLP, a limited liability partnership registered in England Number OC306423. Savills Investment Management LLP is authorised and regulated by the Financial Conduct Authority Number 615368. The registered office of both entities is at 33 Margaret Street, London, W1G 0JD. A list of members of Savills Investment Management LLP is available from the registered office. The Charities Property Fund is a registered charity, number 1080290. Property is not a financial Instrument defined by the Market in Financial Instrument Directive under European regulation; consequently, the directive investment into and the management of property is not regulated by the Financial Conduct Authority.
This document is provided for information purposes only and may not be reproduced in any form without the express permission of Savills Investment Management. The opinions expressed here represent the views of the fund managers at the time of preparation and should not be interpreted as investment advice. This report is aimed at existing investors in the Fund but it may also be distributed to prospective investors.
The value of property is generally a matter of a valuer’s opinion rather than fact. Please remember that past performance is not necessarily a guide to future performance. The value of an investment and the income from it can fall as well as rise and investors may not get back the amount originally invested. Taxation levels, bases and (if relevant) reliefs can change. Changes in the rates of exchange between currencies may also cause the value of your investment, or the income from it, to fluctuate. Property can be difficult to sell and it may be difficult to realise your investment when you want to.
ECONOMIC OVERVIEW STRATEGY THE FUND ASSET MANAGEMENT APPENDICES 68