The independent fund research company Citywire ranks SKAGEN’s property fund number one out of 225 global property funds in the world over three years.* The analysis company, Morningstar, also rates SKAGEN m2 highly, awarding the fund five out of five stars on a three-year basis.**
SKAGEN m2’s portfolio manager, Michael Gobitschek, is AA-rated by Citywire and is ranked number one out of 140 portfolio managers over three years in the Property-Global Equity category. Over a five-year period, Michael Gobitschek is ranked number 29 of 140 by Citywire.
Taking advantage of mispricing
SKAGEN m2 invests in listed property companies from all over the world. At the time of writing, the fund’s top ten holdings are based in Sweden, Japan, Germany, Spain, Singapore, Finland and Norway.
“The fund’s main edge is that we have the entire global real estate market and all real estate segments to choose from. Property is largely locally driven and developments that take place in one city, country or region do not necessarily spill over to another. This allows us to find mispricing or value in different parts of the world,” says Michael Gobitschek.
Recipe for success
Michael Gobitschek typically selects companies which can improve their profitability by taking an active approach to their real estate assets and which act sustainably. By carrying out renovations and other developments, these companies can influence their performance beyond the usual growth in rental income in addition to being supported by running rent-gathering assets. Those properties that have made most progress in terms of sustainability or that have certified buildings are also those that can charge the highest rents and have the lowest costs. These are therefore the winners over time.
Looking at the last quarter, two Swedish companies made the best contribution to SKAGEN m2’s performance, namely D Carnegie (now Hembla) and Catena. Read more about recent developments in the fund’s quarterly report.
What is the advantage of investing in a real estate fund?
“Real estate is something that should complement other asset classes in your investment portfolio. On the one hand, it is a sector driven by global mega trends, such as urbanisation and increased prosperity. On the other hand, there are large local differences when it comes to the supply and demand that drive property values. Stavanger is driven by different factors than Stockholm or San Francisco for example,” explains Michael Gobitschek.
As of the end of September 2018, SKAGEN m2 was ahead of its benchmark index over three and five years. Year to date, the fund has outperformed the index by almost 7 percentage points. The recommended investment horizon in SKAGEN m2 is five years.
*As of 31 August 2018. Over five years, SKAGEN m2 is ranked number 68 of 196, making it one of the top 35% of property funds worldwide over the period.
** Morningstar as of 28 September 2018.