Real Insights Issue 2

REAL INSIGHTS

ROYAL LONDON ASSET MANAGEMENT • QUARTERLY PROPERTY REVIEW • ISSUE TWO

This issueThe Property CycleWe introduce our Property Life Cycle as a means of demonstrating our ethos and approach to property and portfolio asset management

Latest Hot PropertyAn industrial estate in Manchester

The Big PictureThe national picture viewed by our team of experts

Premier Inn, York Road, London

2 • ISSUE TWO • REAL INSIGHTS

ACTIVEPROPERTYMANAGEMENT

The RLAM Property Team comprises 19 sector and area specialists, focused on active asset management. The team seek to re-position property assets in order to maximise capital and income growth.

PROPERTY TEAM MAKE UP

2,036

19 in total

FUM BY FUNDRLAM Property – Funds under management

No of holdings

Value of holdings (£m)

% by value

Retail 154 2,485 46%

Other 25 359 7%

Office 88 1,673 31%

Industrial 78 863 16%

Total assets 345 5,380 100%

RL CIS £1.64bn

TOTAL£5.4bn

RLPPF £1.93bn

RLLTF £1.24bn

SLLTF £14m

RLPF £350m

Royal Liver funds £196m

Total rental income

£250m p.a.Total transactions 2013 2014

Sales £180m £58m

Sales (number of ) 14 15

Purchases £360m £219m

Purchases (number of ) 16 13

Total transactions £540m £277m

Total AUM and the split between the sectors

Asset and Fund managers

Development Managers

Portfolio Services

Note: Total FUM includes Royal London Pension Property Fund (RLPPF), Royal London Co-operative Insurance Services (RL CIS), Royal London Property Fund (RLPF), Royal London Long Term Fund (RLLTF), Royal Liver funds, Scottish Life Long Term Fund (SLLTF)

Source: RLAM as at 31 March 2015

Total number of tenants, across all the property portfolios

12 3 4

REAL INSIGHTS • ISSUE TWO • 3

PAST, PRESENT,FUTURECommentary from our Head of Property

Hot PropertyLatest asset management activity in our portfolio

W hile UK property market total returns for this year may not be as high as 2014, at the half year point

2015 is still shaping up to be a very good year. After a slightly weaker Q1, market momentum picked up during the second quarter and returns were stronger across all market sectors. Offices and industrials were once again the two strongest performing sectors, with retail lagging someway behind - a recurring trend over the past few quarters.

Market consensus forecast returns are well into double figures and we are predicting a 14% total return for the year. Market conditions remain strong with significant levels of investor interest in all types of UK property, both commercial and residential. The first six months of 2015 saw a record £25.6bn of transactions complete (2.2% higher than the same period in 2014).

The breadth and depth of the investor base is significant and there is no sign of investment demand diminishing in the short term. The seemingly insatiable demand for UK property continues to apply downward pressure to property yields, with the All Property Equivalent Yield moving 12 basis points lower to 6.2% over Q2. Transaction volumes remain high, with properties in London and the South East becoming ever more keenly sought after. Levels of pricing in these core locations are now such that an increasing number of investors are looking to alternative provincial markets in search of yield and value. The value gap between prime and secondary properties continues to narrow. However, given the amount of general yield compression seen across all sectors over the past twelve to eighteen months, rental growth will increasingly be the main driver of returns over the remainder of this year and into 2016.

The UK economy appears to be in relatively good shape when compared with other major western economies. With negligible levels of inflation, increasing levels of wage growth and stable employment numbers, consumer confidence is increasing. Any concerns over post election uncertainty have eased following the decisive result. A stable and growing economy is positive for the UK property market.

Gareth Dickinson

H1 investment activity was the second strongest quarter on record and investor appetite is showing no signs of abating. The investor base remains deep and varied with both overseas buyers and UK institutions increasing their exposure to property. Investor pressure continues to drive yields down. A few sub-sectors (mainly poor secondary/tertiary assets) remain less affected by this yield compression. However the hunt for yield and the increasing differential mean this is unlikely to last for long. In addition, there are signs that if these assets are packaged correctly into portfolios, then investors will respond positively in terms of demand and pricing.

Current pricing levels are supported by good fundamentals - IPD rental growth is strong, the economic environment is improving and supply and demand dynamics in most property markets are moving in favour of the landlord. However, there are some headwinds – US and UK interest rates could rise this year or early next; whilst the risks posed by Grexit seem to have fallen away, the wider issue is far from fixed. In addition, the UK’s proposed EU referendum raises the issue of Brexit and this is sure to have an unsettling effect on markets as the vote approaches. Lastly, the recent tremors caused by the Chinese stock market movement, the oil price and the recent market falls driven by the tech sector have shown that markets remain volatile.

Metroplex Business Park is a 300,000 sq.ft. industrial park in Salford, Manchester - virtually opposite Media City – providing a range of unit sizes and types and is let to a variety of occupiers from trade counter users to data centres.

We believed there was a clear opportunity to enhance this asset and for the Royal London CIS Fund to benefit from the investment into Media City. An ambitious business plan for the property was set at the beginning of 2015 and significant progress has been made so far. We have re-negotiated some existing leases and let one unit. As a result we have extended the average unexpired lease term and improved the net income by c. 8%. The void rate has reduced from 13% to 8% and the investment value has increased by c. 12%.

Opportunities to further enhance investment performance have been identified with another three existing tenants. One vacant unit is under offer, with strong interest in the remaining vacant units in advance of refurbishment works completing. Quoting rents on the vacancies have been increased following the initial successes and improving market conditions.

Investment in the presentation and function of the Park is ongoing with a programme of modernisation including branding, signage, lighting, security and landscaping being considered. Such investment will be designed to drive rents forward, attract new companies onto the Park and encourage existing tenants to commit for longer terms.

Metroplex Business Park, Salford, Manchester

Make hay while the sun shines

THE RLAM PROPERTY LIFE CYCLE


Let

Starting at the top of the cycle, at the Let stage, and moving round clockwise, each of the stages provides an ability for us to actively engage with the tenant. Tenant communication and the awareness of occupier needs and requirements are key throughout the lease term. This enables fund managers to manage the existing relationship well and to remain conversant with changes within the sector / sub-sector.

Rent Reviews

Let’s move onto rent reviews. These are the contractual arrangements in a lease to formally review the rent that the tenant should pay, usually in an upwards only direction. These events are a potential risk for the tenant, as their rent may go up. We have previously used rent reviews as a tool to improve our portfolios, even when there is no rental increase. Examples of this would include extending lease lengths or, if we were concerned about the financial strength of a tenant, securing a parent company guarantee.

Lease Expiry/Renewals

The point at which contractual leases come to an end provides an opportunity to add value. We utilise our fund managers’ knowledge to understand if we want to retain the tenant (at a point in the cycle) or if we want to actively take the unit back. This might be because rents are moving forward, supply is falling and occupier demand is stronger.

In upswings and in times of limited supply, landlords tend to achieve higher rents if the unit is openly marketed rather than negotiating the rent with the existing tenant. However, this has to be weighed up against the likely void period and marketing costs that a vacancy will incur. This decision is also influenced by landlord and tenant legislation.

Refurbish, Re-let and RedevelopSome leases may just be renewed and re-let and have a much shorter life cycle. However, with other assets it may be appropriate, after a number of reletting cycles, for fund managers to consider the base physical asset – can we improve this; extend it; redevelop it; refurbish it; or even should we consider a complete change of use in planning terms.

A number of minor refurbishments may take place over a period of years and mini-cycles, before a more dramatic demolition and re-build project is considered appropriate.

These properties then enter the vacant, demolish and re-build section of the life cycle and so the process starts again. An example of this would be the property in Egham which featured in Issue One of our Newsletter. We are demolishing an existing 45,000 sq. ft. office building and replacing it with a new 100,000 sq. ft. HQ office pre-let to the former tenant for a term of 15 years.

Welcome to RLAM’s Property Life Cycle – a visual representation of our ethos and approach to property and portfolio asset management. This is at the heart of what we do and helps explain why we have such a strong performance track record.

The Property Life Cycle encapsulates our philosophy; that every stage of the cycle could be an opportunity to add value to our property assets. This drives our approach to portfolio management. The team are extremely proud of our property achievements and how we actively manage our clients’ portfolios to deliver outperformance. Real Insights will contain numerous examples of how we put this approach and philosophy into practice and how we extract value from our portfolios.

Of course, not all assets go through the full cycle and some will only go through a number of the stages and will do so within different timescales.

Fund Strategy

Economy

Transactions

Risk Management

Sustainability

Planning

RentreviewRedevelop

Vacant

Re-let Refurbish

LeaseExpiry

Let

Development Expertise

Tenant Communication

Market Knowledge

Sector Specialis

ts


External Framework and Influences

The Property Life Cycle takes place against a backdrop of fund strategy, the economic environment, transactions, risk management, sustainability and the “green agenda” and also national and local planning policies. We are constantly looking to maximise portfolio value within the framework (both opportunities and challenges) created by these issues.

The life cycle works across the different property sectors and sub-sectors. The RLAM property team comprises 19 people and we are structured with sector or area specialists working assets within sub-sectors of the market. These sector specialists are in tune with supply and demand dynamics and understand the underlying market conditions. This is how you really extract value from this life cycle.

There are also additional influences and aspects to ensure that the life cycle is as efficient and effective as it can be. These include the importance of tenant communication throughout the lease to understand their key drivers, what is happening at a business level and to identify changes to wider occupier requirements. Wider market knowledge and in-house development expertise are also vital elements to successfully manage property portfolios.

Stock Pickers

The life cycle relies on having the right stock in the right location. It is very difficult to asset manage properties which are in the wrong location or where the fundamentals may limit the opportunities. Given the importance of individual stock selection, we would describe ourselves as “stock pickers”. It is by having the right stock, in the right location that fund managers can really drive forward added value within portfolios.

IPD/MSCI, the benchmark for property investment, has consistently shown that it is stock selection which drives outperformance, not sector selection or weightings.

Skills and Passion

Asset management is not easy – it is time consuming, often frustrating but most importantly it requires a specialist skill and mindset. This is the primary reason we align the team by the individual property sectors, to ensure we are bringing our sector knowledge and experience to bear across the portfolios.

One of the advantages of property, and one of the reasons that the RLAM property team love dealing with it, is that it is a REAL, tangible asset – you can see it, touch it, change it, knock it down and start again and that makes for a very interesting job.

The RLAM Property Life Cycle


THE BIG PICTURE

To end June 2015 the market has produced a total return of 6.8%, so we fully expect this year to produce returns in excess of 14%.

Industrials delivered a total return of 4.4% in Q2 2015 and a twelve month return of 20.9% according to the IPD Monthly Index. Rental growth over the second quarter was 1.1%, in line with the twelve month rental growth rate of 3.8%. Rental growth is increasingly driving sector returns and it continues to be most marked in London and the South East markets where occupier demand is at its greatest and there is a restricted supply pipeline. Other key distribution locations include the ‘golden triangle’ in the Midlands.

Industrial assets remain much sought after by investors who are focusing on acquiring prime properties in core locations. The sector is forecast to perform strongly in

the medium term. Investor demand is strong across the distribution/logistics and multi-let estate sub-sectors, with prime yields now below 5%. As well as strong activity from UK institutions, specialist REITS and overseas investors have been acquiring assets in 2015. Examples of completed transactions include the acquisition of Brook Industrial Estate in Hayes for £9.1m reflecting a yield of 5.1% and a £42.4m forward fund commitment of a new Dunelm facility in Stoke on Trent reflecting a yield of 5.4%.

The outlook for industrial remains favourable and investors are attracted by a robust and improving occupational market, good rental growth prospects and helpful structural changes such as the growth in online retailing.

Offices delivered a Q2 total return of 5.2% and a twelve month return of 21.8% according to IPD. Rental growth was 2.4% and shows a year-on-year trend of 7.7%. The core London markets of the City, Midtown and the West End remain strong and the focus of much investor activity.

Rental levels in these markets continue to rise, with developers of new properties signing up tenants at near record rents. Prime yields in the West End and City are now 3.3% and 4% respectively with further compression likely over the rest of 2015. Notable transactions in the City and West End respectively, include the acquisition of The Walbrook Building for £575m reflecting a yield of 4% and the sale of 95 Wigmore Street to a private client for £224m reflecting a yield of 3.4%.

Office markets in West London locations such as Hammersmith and Richmond and core South East towns such as Woking and Guildford, are performing well as occupier demand exceeds supply. This has led to rental growth in these locations, though a significant supply of properties completing over the next two years may temper this upward trend. Investor demand in provincial locations remains focused on the ‘big six’ cities, although quality remains paramount to performance. Poor secondary and tertiary properties in weak locations have been seen to struggle.

Investors are still actively seeking yield, but this is becoming more difficult to find. London is still the most popular location with a significant amount of capital looking to buy – not surprising given our prime Central London office forecast return of c. 19%.

Compared to the other sectors, retail has provided a relatively benign Q2 return of 2.2% and a 12 month return of 11.3% according to IPD. Rental growth over the second quarter was only marginally positive at 0.2% and a modest 0.5% in the last 12 months. The sector as a whole continues to underperform offices and industrials in terms of capital and rental growth and level of total return.

The London markets and core towns and cities across the UK are the focus of retailer requirements. They are performing well, but the second-tier towns, and below, are struggling. With the exception of Regent Street, all major central London retail sub-markets saw a marked reduction in vacancy rates over the second quarter, with strong levels of take up recorded. West End retail investment in Q2 was

£762m, an increase of approximately 80% on the same period in 2014. Notable transactions during the quarter included the acquisition of 105-109 and 145 Oxford Street for £42.5m and £40m reflecting yields of c. 2.8%.

Of the main retail formats, retail warehousing continues to provide the strongest returns. For 2015 we are predicting returns of 14.8%, 12.5% and 12.4% for retail warehousing, standard retail units and shopping centres respectively. Improving household finances and a rise in consumer sentiment and spending will drive sector returns. The sector continues to adapt to challenges such as online retailing and supermarket price wars. However, more traditional town centres will need to evolve to meet current consumer requirements.

OFFICES

RETAIL

INDUSTRIAL

James OrrHead of Industrial

Keith MillerHead of Offices

Drew WatkinsHead of Retail


1

23

Source: RLAM as at 30 June 2015

ASSET MANAGEMENT – SURRENDER AND RE-LET UNIT 1, 62/100 JAMESON STREET, KINGSTON-UPON-HULL

The retail team recently identified an opportunity to replace a weak tenant with a financially stronger one, and improve both the investment value and income stream to the Fund. We knew that Lloyds Bank Plc had an imminent lease expiry elsewhere in the town and wished to re-locate to a well configured retail unit in a more prominent location. The Fund’s premises was let to a weak tenant on a relatively short lease. We

agreed a back to back deal whereby the current lease was surrendered and a new 10 year lease was granted to Lloyds Bank. The deal, which also included the new tenant undertaking refurbishment works to the premises, resulted in an immediate 17% uplift in the unit’s value.

1

REFURBISHMENT AND LETTINGGARDEN HOUSE 57/59 LONG ACRE,LONDON WC2

Garden House, with its classic façade, has recently undergone a £1.3m major refurbishment. The building provides self-contained office upper parts over four floors and was previously multi-let providing a total income of c.£330,500 p.a.

The building became vacant following lease expiries in July 2014 and RLAM instigated a very high quality complete refurbishment with a new heating and cooling system, raised flooring, new lighting and WCs. The building was re-launched in the letting market in January 2015, and following a successful letting campaign all four floors have been let to a single occupier at £600,000 p.a.

This initiative clearly demonstrated that by creating the right product in the right building, the Fund was able to double the rent and increase the value of the investment by c. £3.0m.

2

DISPOSAL 2 SOHO SQUARE, LONDON W1

RLAM has taken advantage of the current strong demand for Central London assets and successfully disposed of 2 Soho Square for £6.1m. The attractive Grade II listed office building, extended to 4,758 sq ft (GIA) over lower ground and four upper floors, the building was sold with vacant possession. The building was placed on the market at the end of Q1. Following a targeted and extensive marketing campaign, the building received over 70 inspections and 12 formal offers. Our advisors then requested a second round of bids from the top six parties and a buyer was secured at a level 30% over the initial asking price of £4.65m. The Royal London Property Fund will now recycle these sale proceeds into other core Central London properties.

3


MINUTES WITH...

Andrew Johnston, Fund Manager at RLAM, recently caught up with John Bates, Head of Acquisitions (South) for Premier Inn, and asked him for his considered views on current market conditions and industry trends.

5The branded budget hotel sector has been the fastest growing of the hotel industry over the last decade and it now accounts for 22% of the hotel market. Over 50% of the market is held by four operators; Premier Inn, Travelodge, Holiday Inn Express/Holiday Inn and IBIS. Premier Inn and Travelodge operate from approximately 700 and 500 hotels respectively and both have clear expansion targets for the period to 2020. More recent entrants to the market include Motel One, Melia and EasyHotel.

RL: Premier Inn is widely acknowledged to be the superior branded budget hotel operator. How does the company go about maintaining and growing its market position and staying ahead of the competition?

JB: It’s very important that the Premier Inn brand is synonymous with a high standard of accommodation and service. The company recognises this and will invest £140m in product improvement and maintenance for Premier Inn this year. Refurbishment and maintenance spend is absolutely key and in 2015 some 13,000 rooms will be upgraded.

While the market for new sites and locations is competitive, the acquisitions team at Premier Inn has been together since 2006. Collectively, we have a wide range of connections and contacts and multiple long standing relationships with various property market participants. This ensures that we are aware of market opportunities for new hotels. The robust financial position of both Premier Inn and its parent company, Whitbread Plc, puts us in a strong position when competing for sites.

RL: With a stated target of 85,000 Premier Inn bedrooms in the UK by 2020 the domestic market

is clearly very important to the company. How is the acquisitions team faring in its endeavours to achieve this target?

JB: Premier Inn has nearly 60,000 bedrooms to date and a further 13,000 UK rooms in the committed pipeline. We will be opening one hotel each week for the next two years. The market is growing generally and experiencing something of a structural shift, with certain existing participants exiting and this will present future opportunities for Premier Inn to secure additional sites. Over 50% of the hotel market is comprised of independent operators with single sites. This is forecast to fall to 46% in 2020 as second generations of families opt not to continue the family business.

RL: Are any other markets outwith the UK under consideration for future expansion?

JB: Premier Inn already operates a limited number of hotels in India and the Middle East. The hotels in India are wholly owned and we are working with a joint venture partner in the Emirates. A new hotel in Germany is under development and will open in 2016 and our medium term plans are to have 12 to 15 hotels across 6 to 8 key German cities, of which 6 to 8 hotels will be open by 2020.

The German market today is comparable to where the UK market was perhaps ten years ago in terms of its maturity and we perceive it to offer good future opportunities. There is more of a business/trade centre focus in some of the key cities in comparison to the UK.

RL: ‘Hub by Premier Inn’ is a new concept recently launched by the company. The first hotel has now opened on St Martin’s Lane, Covent Garden. How does this concept differ from a

standard Premier Inn, how has it been received by guests and what are the expansion plans for it?

JB: ‘Hub by Premier Inn’ is very much focused on technology, with all bookings and check-ins taking place via a smartphone app. Rooms are smaller than a standard Premier Inn bedroom and are very well equipped. This concept will give the company access to very centrally located and densely populated locations.

Our hotel on St Martin’s Lane provides 163 bedrooms and guest feedback to date has been very positive, with 90% providing excellent feedback. The hotel has a strong Tripadvisor score. Nine further hotels across London are planned within the next three years, as well as further sites in Edinburgh and other key UK city locations. We presently have 2,000 committed hub rooms in London.

RL: The property market is presently very competitive across all sectors. What do you consider to be the main challenges you face in acquiring new sites/hotels?

JB: The market is certainly more competitive than perhaps it was during the recession when sites were more affordable. There is now more competition for sites and properties from alternative uses such as residential and senior living providers. Rising rents for office properties increasingly mean that continued office use is the most profitable and consequently this reduces the number of properties available for conversion to hotels.

Seemingly ever increasing construction costs is another challenging factor to contend with when considering and appraising potential opportunities. Planning risks are often not insignificant and need to be duly considered.

John BatesPremier Inn

Head of Acquisitions (South)


RL: The branded budget hotel sector has seen significant growth and expansion over the past decade. Can this level of expansion be maintained in the years ahead or is the market reaching a point of possible saturation?

JB: While the sector has seen significant growth and expansion, I don’t believe that the market is reaching a point of saturation. The sector will naturally evolve due to the structural changes that I touched upon previously. The UK remains an attractive location for both tourism and business.

RL: How important is London and its various markets to the company in terms of its medium term growth plans?

JB: There is a big focus on growing Premier Inn within London. We presently have just over 10,000 bedrooms within the M25 and plans to increase this to 20,000 by 2020. This market will be very important to us over the years ahead.

“ We will be opening one hotel each week for the next two years ”

Premier Inn, St Mary at Hill, City of London

This 184 room hotel is located in the heart of the City of London. Completed in 2013 as a conversion of an existing office building and acquired in 2014, it is let to Whitbread Plc until 2038. The property has increased in value by approximately 25% since purchase.

Premier Inn, Station Road, Solihull

This 115 room, purpose built hotel is located in the heart of Solihull town centre. Completed and acquired in 2012, it is let to Premier Inn Hotels until 2032. The property has increased in value by approximately 22% since purchase.

The ‘alternative’ investment class, comprising primarily of hotels, healthcare, private rented sector residential, renewables and student accommodation, has very much become mainstream over the last five years with much capital investment being made in such assets. Two of the property funds under management, the Royal London Property Fund (RLPF) and the Royal London Pension Property Fund (RLPPF) have acquired hotel investments over this period and these have delivered strong investment returns. Each hotel acquired is let on a long lease that provides for indexed rental increases every five years. Such lease structures represent a very attractive investment proposition for a variety of investors, such as pension funds like Royal London. The medium term prospects for the hotel sector are favourable and investor appetite for the sector is forecast to remain strong.

Recent investment acquisitions include the two properties below. Both properties benefitted from inflation based rent reviews, linked to CPI and RPI respectively.


Contract management does not always sit easily with fund managers who view this work as important but dull. It is however a vital element of every successful property fund as getting it wrong can increase workload and distract the team from our key objective of generating outperformance. RLAM has sought to outsource non-core functions where we cannot add value, allowing the team to devote resources where it really matters, adapting our approach dependent upon the materiality of every contract. This in turn allows fund and asset managers to concentrate their efforts to maximise the impact upon investment returns. Working closely with our procurement colleagues, we ask the Property Team at the start of each tender project to identify their key objectives. From this we structure a tender document with a clear set of minimum and stretch targets to encourage innovation and improve service levels. Using a balanced scorecard approach we ensure that costs do not always drive our decision. We evaluate supplier responses based on a well proven and successful set of weighted criteria which places customer

service at the very centre of every decision. For example when we appoint managing agents the occupier is our customer and we must ensure that the agent understands our approach so that as our representative on the ground they realise that excellent customer service will encourage them to renew their lease and retain income levels.We strongly believe that this service provider must become a trusted partner and we seek to incentivise their staff to deliver above average results using a small number of easily understood key performance indicators which are closely linked to our key objectives. Our aim is that both fund manager and supplier are working to achieve the same result. If contracts impose too many penalties, setting targets which cannot be achieved or are over complicated, suppliers can lose their focus and performance will suffer. A continuous and adaptive oversight programme must be put in place. This allows the RLAM fund managers to concentrate on their strengths in acquiring and asset managing property.

THE CONTRIBUTORS

Insight into...

Tendering contracts –how do we do it?Kevin Bould, Head of Support Services

Gareth DickinsonHead of Property

Drew WatkinsHead of Retail and Senior Fund Manager – The Royal London Long Term Property Fund

James OrrHead of Industrial and Senior Fund Manager – The Royal London Pension Property Fund

Kevin BouldHead of Support Services

Keith MillerHead of Offices and Senior Fund Manager – The Royal London CIS Property Fund

Yasin SadiqSenior Asset Manager

Andrew JohnstonFund Manager - Office, Industrial and Alternative

Gareth is Head of Property at RLAM. He has overall responsibility for the Department’s funds and processes whilst retaining responsibility for a number of assets in the South East and regional office portfolio.

Drew is the portfolio fund manager for the Royal London Long Term Property Fund and heads up the Retail team with a particular specialism in retail warehousing.

James is the portfolio fund manager for the Royal London Pension Property Fund and heads up the Industrial team.

Kevin is responsible for optimising service delivery from the portfolio’s core outsourced partners. He is also responsible for the management of key insurance and environmental risk.

Keith is the portfolio fund manager for the Royal London CIS Property Fund and heads up the Office team, with a particular specialism in the Central London office market.

Yasin is a Senior Asset Manager working on the retail portfolio across all the funds. Yasin deals with all retail sectors from high street to retail warehouse and supermarket units and drives value through asset management and development.

Andrew is a fund manager working on the industrial and office portfolio across all the funds, whilst also specialising in the hotel and long income sector. Andrew is the Deputy Portfolio Fund Manager for the Royal London Property Fund.

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In thepicture...Eastcheap, London EC3Acquired by RLAM in January 2015, this office building provides 20,500 sq.ft. of modern accommodation behind a retained Portland stone facade. The property is fully let to seven tenants.

Issued by Royal London Asset Management August 2015. Information correct at that date unless otherwise stated. For professional investors and advisers only. Past performance is not a guide to future performance. The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. Royal London Asset Management Limited, registered in England and Wales number 2244297; Royal London Unit Trust Managers Limited, registered in England and Wales number 2372439. RLUM (CIS) Limited, registered in England and Wales number 2369965. All of these companies are authorised and regulated by the Financial Conduct Authority. All of these companies are subsidiaries of The Royal London Mutual Insurance Society Limited, registered in England and Wales number 99064. Registered Office: 55 Gracechurch Street, London, EC3V 0RL. The marketing brand also includes Royal London Asset Management Bond Funds Plc, an umbrella company with segregated liability between sub-funds, authorised and regulated by the Central Bank of Ireland,

registered in Ireland number 364259. Registered office: 70 Sir John Rogerson’s Quay, Dublin 2, Ireland. Ref: 718-PRO-07/2015-CH

CONTACTFor further information about any of

our products or services, please contact:

Royal London Asset Management 55 Gracechurch Street London EC3V 0RL

Tel020 7506 6754

Fax020 7506 6796

[email protected]

www.rlam.co.uk

Real Insights Issue 2

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