Lansdowne Fund Management
What We Do
Lansdowne focus remains clear and transparent. Giving a return to our investors that are both highly profitable and consistent, we provide regular income streams from maintained and spread the income produced from Real Estate Investment Trusts (REIT). Modelled on mutual funds, a REIT income sources many types of revenues such as Diversification and Long-Term Capital Appreciation.
Where large public companies provide their investors with the option to buy shares, Lansdowne pool together investments from like-minded clients to buy real-estate projects and equally divide those funds into units making each investor a ‘unit-holder’.
The Unit-Holders of a REIT fund then go onto aerning a share of the income that is produced without ever having to purchase the property.
- Investment Diversification – Diversifying an investment aims to reduce portfolio volatility for investors. Adding a REIT to a portfolio reduces risk as they can be classed as separate entities such as stocks or bonds.
- Favourable Dividend Pay-Out – REIT’s have to distribute 90% of its profits as dividends to the unit-holders to avail tax exemption statuses. A higher pay-out reduces the risk of management for investors.
- Debt Free Investment – REIT’s are whole equity financed and only unsecured borrowing is permitted under the regulations.
- Transparency – REIT’s follow the same rules and regulations of disclosure as any other public listed company.
- Liquidity – REIT’s are required to be listed on the Stock Exchange which provides investors the option to exit at any time allowing early responses to market change.
How We Do It
Lansdowne only seeks out investments that yield the highest return. We quantify our success by delivering investment returns which are either in line or exceed each individual clients’ target.
Though recognising that clients are different, the fundamental key that reinforces the trust with Lansdowne is the refinement in tailoring the client’s needs behind what the client wants.
Exploiting the areas that add value to investments, allows a structured approach to identifying an investments risk appetite. Influencing factors that Lansdowne consider before presenting any investment include:
- Portfolio Structure
- Asset Management
- Stock Selection
- Risk Assessment
Maintaining a high exposure to those sectors of the market that we forecast to exceed expectations allows us to ascertain areas of the market that we believe to underperform and therefore have relatively low exposure.
Adapting to changes within the property market cycle through intelligence gathering, this has allowed Lansdowne to strategize for the changes in the risk involved. Should the risk level increase, we can then move that portfolio into a more defensive position.
Keeping our clients at the forefront of our strategies, any changes we make to the investment, has minimal transactional impact to the revenue stream.
An in-depth SWOT Analysis (Strengths, Weaknesses, Opportunities & Threats) of each investment includes a detailed business plan which outlines rental growth assets, income assets or added value assets. This process allows us to ensure that the portfolio is appropriately balanced to reflect the client’s individual risk appetite.
The business plan also identifies opportunities to pro-actively add value to the asset. This can include the improvement to the physical quality of the building, changing planning designation to a higher value or changing the nature of the risk associated with the investment. The residual impact of these changes can include the improvement in the quality of tenants or increasing the length of the contractual cash stream.
Whether in the UK, in other international market that Lansdowne is invested in, we have a team that has a visible and active presence. Not only does it maximise our access to investment opportunities, but also provides up to date information on key market quantifiable data such as rental values and yields.
Lansdowne measures the risk at three separate points. The market itself, the portfolio and the property specific to the portfolio. It is important to stress that our definition of risk covers the risk of potential capital value loss in addition to market volatility.
Market intelligence and market behavioural analysis form the fundamental components in our investment process and remain vital to ensuring steady revenue streams for all our investors regardless of their risk appetite.
Throughout the investment process, research of the global markets we invest in will be done heavily as influences can vary geographically. Refining the investment to the client remains a part of our strategy through careful stock selection and asset management.
Assessing the market relative to the portfolio also plays an important function during the course of each research process. The structure of our portfolios are designed to out-perform initial projections whilst carrying a lower risk in the market.
Lansdowne has created a work ethic that allows us to work smarter where analysis throughout each investment has paid dividends to our investors.
Where property development can have an impact on the environment, Lansdowne also plays a role in maintaining sustainability. Regarding ourselves as advocates in our social responsibility to reduce our carbon footprint, we aim to create ‘greener buildings’ that save energy bills for the tenant and reduce climate change for the greater good.
Through any investment opportunity we identify, sustainability always remains a part of the due diligence process. Where a buildings EPC rating is now considered one of the deciding factors for tenants, Lansdowne also sees this as an opportunity to have improved.
Thus, this initiative becomes mutually beneficial financially. What the tenant may save in energy bills, continues the stream of revenue for the investor.