The strategy of the Fund is to invest in a diversified portfolio of thematic real assets. The Fund’s 21 investments are set to benefit from four socio-economic mega trends: ageing population (15.3% portfolio weight), digitalisation (30.1%), generation rent (16.7%), and urbanisation (13.1%). It will also invest in REITs with assets that encompass more than one of these trends (24.8%).

Within each mega trend, the Fund Manager undertakes fundamental research to identify the most attractive investment opportunities. Combining top-down analysis of socio-economic mega trends with bottom-up fundamental research has yielded good results for the Fund.

Over the course of July, the NAV of the Fund increased by 3.8% (A Acc GBP), compared to the UK real estate index¹ which increased by 6.1%. Since its launch, the Fund has increased by 6.4% (A Acc GBP), outperforming the UK real estate index¹ which has fallen by 6.4%.

Markets were strong in July, with the FTSE 100 and FTSE 250 both posting solid gains. Energy companies were the standout performers, with an early spike in Middle East tensions pushing oil prices above $100 a barrel before easing as attention turned to second-quarter earnings. The Bank of England held interest rates steady, amid easing inflation levels, although policymakers flagged that energy-driven price pressures could push it higher again later in the year. The UK labour market also remained steady, with a degree of political clarity following recent government changes and a confirmed date for the Autumn Budget helping support sentiment, leaving UK markets among the more resilient performers globally over the month.

July was a good month for the Fund, with all mega trends delivering positive performance.

After three unsuccessful attempts, Prologis finally won over SEGRO’s (portfolio weight 9.6%) Board with a “best and final” cash and stock offer valuing the company at 1,031.7p per share. The Board would be “minded to recommend” a firm offer at this level, which represents a 39.0% premium to the undisturbed share price or a 14.0% premium to SEGRO’s NAV. An additional lens through which to view the deal is the price/earnings multiple. Prior to Prologis’s first offer, SEGRO was trading at about 19x it’s FY-26 EPS. Prologis’s latest offer values the company at 27xit’s FY26 EPS or, more importantly, 21xSEGRO’s FY30 EPS ambition. This means that Prologis is offering a higher multiple than SEGRO was trading on before the first announcement, on an extra four years’ worth of EPS. In addition, Prologis has committed to establish a secondary listing on the London Stock Exchange.

Whilst M&A activity was the dominant driver of returns for the digitalisation mega trend, the other mega trends also enjoyed positive returns on the back of solid operating results.

Within the urbanisation mega trend, Shaftesbury (portfolio weight 4.5%) reported healthy like-for-like rental growth in the first half of 2026, contributing to a 9% increase in EPS and a 16% increase in the dividend. There remains plenty of reversionary potential in the portfolio and Shaftesbury’s balance sheet remains a source of strength. CEO Ian Hawksworth said, “We are well-positioned to pursue expansion opportunities and capitalise on market opportunities as they arise.”

Within the ageing population mega trend, Primary Health Properties (portfolio weight 7.4%) also reported a good set of results, with EPS up 9% and the dividend up 3%. Following the acquisition of listed peer Assura last year, PHP has made considerable progress on the integration front. According to CEO Mark Davies, “92% of the cost synergies identified have now been delivered, supporting a further reduction in our cost ratios, we continue to progress joint venture discussions to reduce leverage, and are well advanced with refinancing plans.”

Within the generation rent mega trend, after a challenging leasing cycle last year, Unite (portfolio weight 5.1%) announced that 89% of its beds are already reserved for the 2026/27 cycle, compared to 87% at the same time in the 2025/26 cycle. The company reiterated guidance for FY-26 of 94-96% occupancy and 1-2% rental growth, translating to a 0-2% increase in like-for-like income growth. Unite is also on track to complete £300-400mn of asset sales this year as it seeks to refocus its portfolio around the best-performing universities.

The Fund Manager continues to remain optimistic about the Fund’s performance due to the strong underlying performance of portfolio assets and confidence in the mega trends, alongside continued M&A activity. Investors should look to the attractive, growing dividend yield and the potential for further upside, with the Fund continuing to invest in defensive, domestic and dependable assets. While growth concerns continue to impact capital markets, the four socio-economic mega trends - ageing population, digitalisation, generation rent and urbanisation - are set to gain.

¹MSCI UK IMI Core Real Estate Net Total Return GBP