The Charities Property Fund www.cpfund.co.uk savillsim.com - - PowerPoint PPT Presentation

The Charities Property Fund

www.cpfund.co.uk

savillsim.com

Economic Overview

UK property valuation remains attractive relative to other classes

Property yield spread over 10-year UK government bonds

11 12

July 2016: 5.4% spread

6 7 8 9 10 2 3 4 5 6

30 year average = 2.13%

3

• 2
• 1

1

• 3

Jul-87 Jul-88 Jul-89 Jul-90 Jul-91 Jul-92 Jul-93 Jul-94 Jul-95 Jul-96 Jul-97 Jul-98 Jul-99 Jul-00 Jul-01 Jul-02 Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Spread All Property equivalent yield Gilt yield Average

3

Source: IPD, Macrobond, Savills Investment Management

UK property income remains attractive relative to other classes

Property yields relative to other asset classes

Direct Property* Index-linked lease (20+ years) I t t G d UK I fl ti li k d C t B d (20 ) FTSE All-Share Index Dividend Yield UK Government Inflation linked Bond (20+ years) Investment Grade UK Inflation-linked Corporate Bond (20 year)

• 2%
• 1%

0% 1% 2% 3% 4% 5% UK Government Inflation-linked Bond (20+ years)

4

Source: Bloomberg, Savills Investment Management

* 20 year lease to Marks & Spencer’s

The lack of consensus among economists

2.0 2.5 3.0 2.0 2.5 3.0

UK GDP growth (2017) forecast range

0 0 0.5 1.0 1.5 0 0 0.5 1.0 1.5

• 1.5
• 1.0
• 0.5

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BS ng cs nk se der as ba C nk td ale up en cs nk cs nk nk cs BD ng

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• 1.5
• 1.0
• 0.5

0.0 es up ys nk IB go dit ets ets up ets ch cs ch hs xis ets ro nk ey ed tal

• rs

BS ng cs nk se der as ba C nk td ale up en cs nk cs nk nk cs BD ng

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Nomura Securitie Credit Suisse Grou Barclay Danske Ban Credit Agricole C Wells Farg UniCre BC Capital Marke UnCredit Marke ING Grou G Financial Marke merica Merrill Lync IHS Economi BMI Researc Goldman Sach Natix Nordea Marke ABN Am Commerzba Morgan Stanle Standard Chartere BMO Capit

• economic Adviso

UB Fathom Consultin Roubini Economi Standard Ban JP Morgan Chas Banco Santand BNP Pariba Helab HSB Deutsche Ban

• b Safra Suisse L

Societe Genera Citigrou Handelsbank Action Economi DekaBan Oxford Economi Raboba Berenberg Ba Capital Economi Emirates NB Beacon Consultin Liverpo Nomura Securitie Credit Suisse Grou Barclay Danske Ban Credit Agricole C Wells Farg UniCre BC Capital Marke UnCredit Marke ING Grou G Financial Marke merica Merrill Lync IHS Economi BMI Researc Goldman Sach Natix Nordea Marke ABN Am Commerzba Morgan Stanle Standard Chartere BMO Capit

• economic Adviso

UB Fathom Consultin Roubini Economi Standard Ban JP Morgan Chas Banco Santand BNP Pariba Helab HSB Deutsche Ban

• b Safra Suisse L

Societe Genera Citigrou Handelsbank Action Economi DekaBan Oxford Economi Raboba Berenberg Ba Capital Economi Emirates NB Beacon Consultin Liverpo C RB ING Bank of Am S Pantheon Macro R Bank Jaco C RB ING Bank of Am S Pantheon Macro R Bank Jaco

5

Source: Consensus Economics, Savills Investment Management

10

Income returns in perspective

8 9 10 5 6 7 % 3 4 5 % 1 2 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 FTSE 100 dividend yield Repo Rate/Official Bank Rate

6

All balanced property fund index (median annual income return) The Charities Property Fund (annual income return)

Source: Bloomberg, Bank of England, AREF, Savills Investment Management

The Fund

7

Charities Property Fund

• Original and largest charity specific property fund - £1,064m
• Broad investor base - 1,898 investors
• 15 year history

Track record

• Income: high and secure level of income (4.9% net) with prospect of

growth in income

• Capital: maintain capital value

Investment

• bjectives
• Capital: maintain capital value
• Experienced advisory committee
• Common Investment Fund (CIF)

Strong governance &

• Common Investment Fund (CIF)
• Ungeared; no speculative development

Th F d i h it

governance & risk controls

• The Fund is a charity
• Low TER of 0.60%

Tax efficient & cost effective

8

A low risk, diversified property fund delivering high and secure income

Fund level performance - total return

16.3 16.1 13 3 15.1 15.5 14 16 18 8.7 13.3 11.1 10.1 7 7 12.5 9.7 8.4 10 12 14 annum 6.0 4.8 7.6 7.7 4.0 7.2 8.4 4 6 8 % per a 1.7 2 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 3 years (per annum) 4 years (per annum) 5 years (per annum) (per annum) (per annum) (per annum) The Charities Property Fund All Balanced Property Funds

9

Source: Savills Investment Management, AREF (June 2016)

Consistently outperforming

Fund level performance – income and capital

11.2 17 1.4 5.4 6.5 7.7 5.2 4.5 7 12 nnum 6.1 5.5 5.8 5.7 5.2 5.6 5.6 5.7 1.4 2 7 % per a

• 2.2
• 3

2011 2012 2013 2014 2015 3 years (per annum) 4 years (per annum) 5 years (per annum) (per annum) (per annum) (per annum) Income Capital Interest Rates

10

High and secure income and growing capital

Source: Savills Investment Management (December 2015)

Fund growth (Net Asset Value)

3 115

£1,064

1,000 37 Properties 115 Properties

£62 £864

800 n

£357 £456 £492 £627

400 600 £ million

£229 £357

200 400

11

Greater size brings greater diversification

Source: Savills Investment Management (June 2016)

Total return indices (rebased 2000)

300 350 200 250 100 150 50 100 Dec 2000 Dec 2001 Dec 2002 Dec 2003 Dec 2004 Dec 2005 Dec 2006 Dec 2007 Dec 2008 Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014 Dec 2015 All balanced property fund index (TR) The Charities Property Fund total return indexed

12

All balanced property fund index (TR) The Charities Property Fund total return indexed FTSE 100 Total Return Index RPIX Repo Rate/Official Bank Rate indexed

Source: Bloomberg, Bank of England, AREF, IPD, Savills Investment Management

Strategy & Acquisitions Acquisitions

Sector weightings - purposeful bias towards Industrials and Alternatives

AREF CPF

14

Source: AREF (June 2016), Savills Investment Management (June 2016)

Redefining London’s office boundaries

Average prime rents for London office sub-sectors Infrastructure improvements Number of start-up business searches for London office space

6 3 3 6 7 5 4 3 2 1 7 5 4 3 2 1

15

Source: CBRE Source: Hubble, Savills Investment Management

Alternatives – demand at a historic high

25% 30% 18.0

Alternative investment volumes (£ billion – LHS) % invested in the Alternatives

15% 20% 20% 25% 10 0 12.0 14.0 16.0 10% 10% 15% 4.0 6.0 8.0 10.0 0% 5% 2009 2010 2011 2012 2013 2014 2015 0% 5% 0.0 2.0 4.0 2010 2011 2012 2013 2014 2015

Charities Property Fund AREF All Balanced Funds Index Alternatives investment volumes % of total UK investment volumes - RHS

16

Source: Jones Lang LaSalle Research Source: AREF All Balanced Funds Index

The jury is no longer out on alternatives

Jurys Inn, Brighton Jurys Inn, Derby

• Excellent location next to Brighton railway station
• Recently refurbished
• Low rent and capital value per sq ft of only £180
• Well located mid range hotel
• Recently refurbished
• Low capital value per sq ft
• 27 years unexpired
• 5 yearly rent reviews to the RPI Index
• £28.0 million (5.5%)
• 29 years unexpired
• 5 yearly rent reviews to the RPI Index
• £15.0 million (8.3%)

17

Source: Savills Investment Management (June 2016)

£43 million, 27.5 years unexpired, Yield: 6.6%

Leisure and automotive

Mercedes - Poole, Salisbury & Dorchester Derry’s Cross, Plymouth

• Portfolio of car dealerships
• Excellent brands and catchments
• Prominent locations
• Town centre hotel, leisure and gym
• Prominent island site, local landmark
• Average rent of only £10 per sq ft
• 15 years unexpired at affordable rents
• Guaranteed rental increase in 2017
• £15.0 million (5.9%)
• Average lease length of 20 years unexpired
• 75% of income is fixed or RPI
• £13.7 million (6.4%)

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£29 million, Yield: 6.2%

Source: Savills Investment Management (June 2016)

Retail warehousing – South East focus

Homebase, Basingstoke

3

8

4 1 2 6 7 5

• Affluent town and catchment
• Undersupplied location

4

• Consistent top quartile trader for the tenant
• Large site with extensive frontage
• 11.5 years unexpired at an affordable rent
• £17 3 million (6 4%)

19

• £17.3 million (6.4%)

Source: Savills Investment Management (June 2016)

Retail – discount shopping

Brook Retail Park, Hereford Halewood Shopping Centre

• Modern open A1 retail park
• Newly constructed town centre scheme

p p

• Food and discount operators
• Low rents of £12.00 per sq ft
• Low site cover and excellent parking ratio

y

• Food and discount operators
• Low average rents of £13.80 per sq ft
• Low site cover and excellent parking ratio
• £5.6 million (6.7%)
• Long leases and fixed increases on over 50%
• £9.3 million (6.4%)

20

£15.0 million, 12.5 years unexpired (10 to break), Yield: 6.5%

Source: Savills Investment Management (June 2016)

Industrial - supply levels at historic lows

100

• 39 properties
• 3.5 m sq ft
• Av rent £4.75 psf

70 80 90

s)

• 67%

e t £ 5 ps

• Av cap val £70 psf
• Units of 10-250K sq ft

40 50 60

Sq ft (millions

+ 5.6%

10 20 30

S

2009 2010 2011 2012 2013 2014 Q1 15 Q2 15 Q3 15

21

Source: Savills Research

Industrial – value to be found selectively

Really Useful Products, Normanton Verhoek, Wakefield

• Modern purpose built unit
• Well located on prime distribution park
• Let to Really Useful Products as HQ, 7 years unexpired
• Prime location at intersection of M62 and M1
• Low site cover
• Recently let on new 10 year lease, break at year 5
• Significant tenant fit out
• Third purchase on this park – building critical mass
• £3.8 million (7.0%)
• 5 yearly rent reviews to the RPI Index
• UK distribution HQ for Dutch logistics company
• £3.1 million (7.6%)

22

Source: Savills Investment Management (June 2016)

£6.9 million, 6 years unexpired, Yield: 7.3%

Retail – selective opportunities

Westgate Buildings, Bath Queen Street, Cardiff

• Strong A3 location
• Upper parts let on a ground lease offering a significant

ultimate reversion

• Low rent and fixed increases
• Strong position between Next and M&S
• Excellent trading store
• Cardiff City Centre has been significantly improved
• Low rent and fixed increases
• 23.5 years unexpired (17 to break)
• £4.0 million (4.25%)
• Burger King have operated this unit since 1981
• Over rented but 8 years remaining and high yielding
• £4.2 million (7.7%)

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£8.2 million, 15 years unexpired, Yield: 6.0%

Source: Savills Investment Management (June 2016)

£150 million acquired - year to June 2016

55% of income benefits from guaranteed rental increases 12 properties acquired at an average yield of 5.2% (vs MSCI at c5.1%) 0% vacancy (vs MSCI at c10.2%) 16 years average lease length 14 years to earliest break (vs MSCI at 8 3 years) 97% of income with low or negligible risk tenant rating (vs IPD at 78%) 16 years average lease length, 14 years to earliest break (vs MSCI at 8.3 years)

24

Source: Savills Investment Management (June 2016)

Outperformance through stock selection

Asset Management & Sales

Portfolio summary

• 115 properties (average size £9.0m)
• 235 tenancies
• Average 11.7 years to lease expiry (MSCI: 8.3

years)

• 33% of income benefits from fixed increases

(both 2.5% compound & RPI)

• Strong covenants – 85% secured on low &

negligible risk covenants (MSCI: 78%) V 1 0% f t l l (MSCI 10 2%

• Vacancy 1.0% of rental value (MSCI: 10.2%

May 2016)

26

Source: Savills Investment Management (June 2016)

Diversified fund with strong covenants, long leases and few voids

Profit taking after executing business plans...

Rayleigh (supermarket) £10.0 million (4.5% NIY) Milton Keynes (office) £7.2 million (7.0% NIY) Doncaster (industrial) £14.0 million (6.9% NIY)

• Two modern industrial units
• Acquired for £3.7m
• Acquired for £5.7 million in

D 2014 ld 15 th

• Acquired for £11.4 million in

2014

• One unit vacant with a rental

guarantee

• Valued at £6.5 million in Jan 2015
• New lease agreed with M&S Plc
• Rent increased to £475,000 pa

N 20 l ith RPI Dec 2014, sold 15 months later

• Let empty office suite
• Limited prospects for further
• New letting secured to

Howdens

• 22% capital growth over 18

month hold period

• New 20 year lease with RPI
• 34% capital uplift (£2.2 m)
• IRR of 14.0% per annum since

purchase growth and growing risk of

• bsolescence
• IRR of 22.0% per annum since

purchase

27

Source: Savills Investment Management (June 2016)

Continually improving quality

Further sales after successful asset management...all

Retail Office Industrial

28

Source: Savills Investment Management (June 2016)

11 sales, £48.0 million, 7.1%

Creating value...

Westgate Buildings, Bath Lifeboat Quay, Poole

• Forward funding of a new mixed use scheme
• Acquired in 2012 for £6 9 million (8 75%)
• Forward funding of a new mixed use scheme
• Cost of funding of £11.3 million (7.3%)
• Average unexpired lease term of 25 years
• Uncapped RPI rental increases every 5 years
• Acquired in 2012 for £6.9 million (8.75%)
• Lease surrender taken from office tenant
• Planning permission submitted for hotel use
• Refused initially but eventually granted February 2016
• Rare product, Low rents (agreed in 2008)
• Freehold, BREEAM ‘Very Good’

y y g y

• Likely to result in end value over £15 million

29

Source: Savills Investment Management (June 2016)

Improving the built environment

Brocklebank Retail Park, Greenwich Imperial Works, Kentish Town

• Conversion of a Victorian Piano factory
• New 10 year lease to MVF Global
• New open A1 food & fashion park
• Pre-let to Next, Primark, Mothercare and Aldi
• Affordable rent of £40.00 per sq ft
• Fully refurbished
• Freehold
• Excellent sustainability credentials
• Improving area with growing population
• Freehold reversionary asset
• Long leases and fixed increases
• BREAAM ‘Very Good’ rating
• Excellent sustainability credentials
• £15 million, 5.0%
• BREAAM Very Good rating
• £52 million in total, a yield of 4.5%

30

.... more forward fundings, both off market and both prime London assets

Source: Savills Investment Management (June 2016)

Key statistics – last 3 years

Net Asset Value up 97% Number of properties has increased by 60% Investor base has increased by 45% Unit Price is up 25% p Dividend is up 3.5% Average unexpired lease term is up 22% Average unexpired lease term is up 22% Leases benefitting from fixed increases is up 62% Income secured on low & negligible risk covenants is up 4% Vacancy rate is down 68%

31

Source: Savills Investment management (June 2016)

All indicators are green

Appendices

The Charities Property Fund team Supplementary market and Fund information The Charities Property Fund team The Advisory Committee Contact details

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The Fund – investment by charity category

Services (Armed Forces) 2% Environment / Conservation 1% Accommodation 1% Disability 1% General Charitable Purposes 30% Educational Arts / Culture 4% Relief of Poverty 3% ( ) Animal Welfare 1% Educational 11% Medical / Health / Universities 17% Religious Activities 16% Hospices 13%

33

Source: Savills Investment Management (June 2015)

Fund size and Bid/Offer spread costs

AREF Index Bid/Offer % Size (£m) 1 The Charities Property Fund 2.5 958.6 2 Mayfair Capital Property Income Trust for Charities 3.0 352.0 3 COIF Property Fund 3.2 504.6 4 Keills Property Trust 5 6 33 7 4 Keills Property Trust 5.6 33.7 5 Schroder UK Property Fund 5.7 2018.9 6 Legal and General Assurance (Pensions Management) Ltd 5.8 2539.5 7 The M&G UK Property Fund 5.8 743.5 8 UBS Triton Property Fund 5.8 713.7 9 Hermes Property Unit Trust 6.0 1149.8 9 Hermes Property Unit Trust 6.0 1149.8 10 CBRE UK Property Fund LP 6.0 620.1 11 Standard Life Investments Pooled Pension Property Fund 6.2 3077.0 12 Royal London Property Fund 6.2 366.6 13 Fidelity UK Real Estate Fund 6.2 359.3 14 Henderson UK Property Fund 6.2 176.5 p y 15 Cordea Savills UK Income and Growth Fund 6.2 104.9 16 BlackRock UK Property Fund 6.3 3138.9 17 Rockspring Hanover Property Unit Trust 6.3 513.5 18 Threadneedle Property Unit Trust 6.4 1205.6 19 Aviva Investors Pensions 6.5 1200.0 20 Mayfair Capital Property Unit Trust 6.5 209.6 21 Lothbury Property Trust 6.8 1330.6 22 The Local Authorities' Property Fund 6.9 387.1 23 Kames Active Value Property Fund 6.9 128.9 24 FL GM Property Fund 7.1 445.6

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Source: AREF All Balanced Funds Index (June 2015)

25 Threadneedle Pensions Ltd

• 1546.3

26 AEW UK - Core property fund

• 216.9

Lease expiry profile (assuming all breaks are exercised)

Dec 2012 Dec 2015 The Fund versus market average

14% 16% 18% 12% 14% 16% 18% me 4% 6% 8% 10% 12% 14% % of income 4% 6% 8% 10% 12% % of incom 0% 2% 4% 0% 2% Charities Property Fund IPD Quarterly Index Charities Property Fund IPD Quarterly Index

35

Source: IPD / Savills Investment Management (December 2015)

Expiry risk significantly reduced

UK commercial property market has performed well

More locations reporting rental growth… …and yield compression

100%

100%

70% 80% 90%

70% 80% 90%

40% 50% 60%

40% 50% 60%

10% 20% 30%

10% 20% 30%

0% 10% Q1 05 Q3 05 Q1 06 Q3 06 Q1 07 Q3 07 Q1 08 Q3 08 Q1 09 Q3 09 Q1 10 Q3 10 Q1 11 Q3 11 Q1 12 Q3 12 Q1 13 Q3 13 Q1 14 Q3 14 Q1 15 Q3 15 Rents rising Rents stable Rents falling

0% 10% Q1 05 Q3 05 Q1 06 Q3 06 Q1 07 Q3 07 Q1 08 Q3 08 Q1 09 Q3 09 Q1 10 Q3 10 Q1 11 Q3 11 Q1 12 Q3 12 Q1 13 Q3 13 Q1 14 Q3 14 Q1 15 Q3 15 Yields moving in Yields stable Yields moving out

36

Source: Cushman & Wakefield, Savills Investment Management

Rents rising Rents stable Rents falling

Yields moving-in Yields stable Yields moving-out

UK property cycle has further to go but capital growth to moderate

IPD capital growth

100 Phase II Phase III 90

Yields compressing Rents declining Yields compressing Rents rising

70 80

2015

Phase I Phase IV

Yields stabilising Rents rising

60

Yields moving

• ut

Rents declining Rents rising

50 12 24 36 48 60 72 84 96 108 120 132 144

• No. of months

37

Source: IPD, Macrobond, Savills Investment Management

late '80s/early '90s '07-15

So why worry?

• Nearly 7 years into an up cycle
• GBP 375 billion of QE turbo-charged asset prices, now there are prospects of higher

Q g p , p p g interest rates

• Equities starting to look better value than property
• Global growth is slowing
• Not a balanced UK recovery – manufacturers are struggling

y gg g

• UK austerity – government budget deficit was 5.7% of the GDP in 2014
• BREXIT referendum

38

Management and governance of the Charities Property Fund

CPF Advisory Committee

Malcolm Naish (Chairman) Nick Downer

Charities Property Fund Team

Harry de Ferry Foster (Fund Director) Angy Benitz Nick Downer Chris Hills Richard Robinson Wilf Stephenson Angy Benitz Tammy Thomas Jim Garland Lucy Auden Paul Taylor Andrew Chapman Alan Fletcher Aidan Kearney Amy Joslin Shalin Khanna Aidan Kearney

39

The Charities Property Fund Team

Harry de Ferry Foster Fund Director Angy Benitz Portfolio Manager Eleanor Champion Investor Relations Tammy Thomas Finance & Operations Manager Amy Joslin Investor Relations Jim Garland Portfolio Analyst Lucy Auden Investor Relations y

40

The Charities 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 making sure the Fund fulfils its objectives. This includes investing new subscriptions, investor relations and marketing. Harry’s role encompasses portfolio management including strategic and tactical considerations, y p p g g g , financial analysis, property acquisitions and sales. Harry joined Savills Investment Management in 2002 from Cushman & Wakefield where he spent 6 years in a variety of investment agency roles before assisting with the establishment of their Fund Management team in 1998. Harry graduated in 1995 and qualified as a Chartered Surveyor in 1999 and he has almost 20 years experience in property investment and fund management. Harry completed the Investment Management Certificate (IMC) exams in 2003. Angy Benitz is also a Portfolio Manager for the Charities Property Fund. Angy's primary role involves asset acquisition and disposal together with adopting portfolio and fund management initiatives. 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 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.

41

The Charities Team

Jim Garland is the Portfolio Analyst for the Charities Property Fund. He 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 C f

• assignments. Jim moved across to the Charities Property Fund team in 2014. As a portfolio

analyst, Jim supports the portfolio managers with asset management initiatives, acquisitions and disposals. Prior to joining Savills Investment Management Jim worked at a healthcare strategy and k ti lt Ji d t d f UCL i 1999 ith d i Bi t h l d 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 completed the Investment Management Certificate (IMC) exams in 2011. Tammy Thomas is the Finance and Operations Manager responsible for financial reporting and analysis, and administrator management. Tammy joined Savills Investment Management from KPMG in the Cayman Islands Tammy joined Savills Investment Management from KPMG in the Cayman Islands where she worked in the audit practice with a focus on the alternative investment

• industry. Previously she completed her chartered accountancy training with Deloitte in

London within the real estate team. Tammy graduated from the University of Western Australia in 2004 where she studied Accounting and Corporate Finance.

42

The Charities Team

Amy Joslin works in Investor Relations for the Charities Property Fund, responsible for investor communications, fund dealing, reporting and marketing. Amy also sits on the Charitable Giving Committee. Amy joined the Savills Investment Management Investor Relations team in July

• 2014. Previously she worked in a client facing position as a Recruitment

Consultant based in London. Amy graduated from University of Exeter with a degree in BA Geography. Lucy Auden works alongside Amy dealing in investor queries, applications and redemptions and fund reporting for the Charities Property Fund. p g p y Lucy joined Savills Investment Management Investor Relations team in April 2012 and is responsible for fund reporting and investor communications for a number of UK and pan- European Savills Investment Management funds and segregated mandates. Lucy also sits on the Environmental and Social Governance Committee as well as Savills Investment Management Charitable Giving Committee. Prior to joining Savills Investment Management, Lucy worked in a client facing role as a Corporate Account Executive at Number One Health, a private health company specialising in corporate medicals, and then as PA to the CEO of an international executive financial search firm, Execuzen Ltd.

43

Lucy graduated from King's College, London, with a degree in English Language and Literature.

The 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 h i bi d l i f £8 billi 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 LaSalle in 1981. 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 t d b th D k f W t i t d hi f il d i l t t il 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.

44

The Advisory Committee

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.

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 id it l h d ti d it i i f t 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.

45

The Advisory Committee

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. 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.

46

The Advisory Committee

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. p p y 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. Alan Fletcher has held a variety of roles in the Church of England both at local and national y g 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

• f 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

• f 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

47

scheme for Paragon.

Contact

Th Ch iti P t F d The Charities Property Fund c/o Savills Investment Management 33 Margaret Street London W1G 0JD T l 020 3107 5439 For property related information: Harry de Ferry Foster For fund and unit holder related information: Amy Joslin Tel: 020 3107 5439 Fax: 084 5409 1281 E-mail: cpf@savillsim.com

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 number 1080290. 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

• pinions 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 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.

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