COIF Charities Property Fund - CCLA

Report of the Fund Manager
for the half year ended 30 June 2012
Performance
The total return for the six months to 30 June
2012, before expenses, was 1.8%. The table
below notes comparative returns over periods
to 30 June with the Fund’s comparator, the IPD
Quarterly Universe.
Over the 6 months to 30 June the price of an
income unit fell from 101.96p to 99.58p, a
reduction of 2.3%. The dividend payment over
the same period remained steady however at
3.5p, taking the total to 7.57p over the past 12
months, equivalent to a yield of 7.6% based on
the price at the reporting date. The
accumulation unit price ended the half year at
178.57p, compared with 176.63p at the end of
December 2011.
Strategy
The COIF Charities Property Fund provides a
diversified portfolio spread across the main
sectors and geographical regions of the UK. The
Fund aims to provide a good total return and a
high income by investing in an actively
COIF Charities Property Fund
Total capital and income return
managed portfolio of good quality commercial
properties. Central to achieving this objective is
the focus on active management of the property
assets. The Manager believes that this is
appropriate for the size of the portfolio and for
current market conditions. The Fund is almost
fully invested with cash representing just 2.7%
of the assets, and is ungeared.
We expect returns from the sector in the near
term to be dominated by income, with some
erosion in capital valuations. In this environment
we expect that the active, value adding
approach to asset management will help to
support valuations, whilst the opportunities
provided by the yield margin between prime and
secondary graded investments will be a source
of added performance over the longer term.
Void management will be the driver of income
growth and the control of cash and debt
positions will be important influences on
performance.
To 30 Jun 2012
Six Months
%
1 Year
%
3 Years
% p.a
5 Years
% p.a
Performance against comparator
(before expenses)
COIF Charities Property Fund +1.79 +4.92 +14.35 -0.89
Comparator #
Performance after expenses
Income units* +1.10 +3.82 +13.32 -1.76
Accumulation units* +1.10 +3.82 +13.25 -1.81
# Comparator - IPD Quarterly Universe
* Net asset value to net asset value plus income reinvested
Source : The Manager & IPD
6