Over the course of November 2025, the NAV of the Fund decreased by 0.4% (A Acc GBP), underperforming the UK Real Estate Index1, which increased by 1.4%. Since its launch, the Fund has increased by 0.6% (A Acc GBP), outperforming the UK Real Estate Index* which has fallen by 17.4% in the same period.

The strategy of the Fund is to invest in a diversified portfolio of thematic real assets. The Fund’s 22 investments are set to benefit from four socio-economic mega trends: ageing population (15.2% portfolio weight), digitalisation (27.9% portfolio weight), generation rent (19.5% portfolio weight), and urbanisation (12.6% portfolio weight). It will also invest in REITs with assets that encompass more than one of these trends (24.2% portfolio weight).
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.

November was a mixed month for the UK-listed real estate sector. The ageing population sub-sector performed the best, delivering 4.0%**. Digitalisation was next, up 2.7%**. Multi-theme, generation rent and urbanisation delivered negative returns, down 0.8%**, 2.2%** and 2.7%**, respectively.

In November, softer inflation and labour market data increased expectations of future Bank of England rate cuts, which helped push the 10-year gilt yield lower. The Autumn Budget was reasonably well-received, with greater-than-expected fiscal headroom and lower projected gilt issuance helping to stabilise market sentiment. The government introduced lower business rates for retail, hospitality and leisure properties, to be funded by an increase in rates for properties with a rateable value above £500k. The move was intended to tax large e-commerce warehouses, which will benefit high street retail businesses. However, the change will likely affect older secondary stock, rather than the best-in-class facilities owned by businesses like Segro (portfolio weight 7.9%) and Tritax Big Box (portfolio weight 7.6%). In addition, the introduction of separate, higher tax rates for property income could lead more buy-to-let landlords to exit the private rental sector, further reducing the supply of rental accommodation, which is positive for professional landlords like Grainger (portfolio weight 7.3%). The government is also planning to develop 250 neighbourhood health centres, co-locating GPs with other healthcare services. This will be funded by a combination of public investment and public-private partnership, which bodes well for Primary Health Properties (portfolio weight 7.9%).

M&A news flowed into November, with investors in PRS REIT (portfolio weight 4.1%) voting 97.7% vs 2.3% to sell the company to Waypoint Asset Management. The Fund Manager voted against the deal, struck at a c.20% discount to the latest NAV, because he did not believe the offer reflected the true worth of the business, which continues to exhibit sector-leading rental growth. Separately, the Competition and Markets Authority approved the merger of Empiric (portfolio weight 3.0%) and Unite (portfolio weight 3.5%), bringing forward the effective date of the deal to early 2026. Finally, Life Science REIT (portfolio weight 1.1%) shareholders voted in favour of the Board's proposal of a managed wind-down, which could take up to 18 months.

Several portfolio companies released positive results in November. Grainger announced an increase in net rental income of 12.3%, with like-for-like rental growth of 3.6% and occupancy of 98.1%. EPRA earnings per share was up 12.3%. Helen Gordon, CEO of Grainger, said “It has been another excellent performance for Grainger and the outlook for the business is bright as we continue to deliver sector-leading earnings growth despite macro-economic headwinds.” LondonMetric (portfolio weight 6.5%), also released positive results in November, including an increase in net rental income of 14.6%, with annualised like-for-like rental growth of 5.2%. Andrew Jones, CEO of LondonMetric said of the results, “Our increased scale is presenting numerous opportunities, and the sale proceeds have been reinvested into higher quality and growth logistics, convenience and hotel investments - it's a case of selling your losers and running your winners.”

Although Workspace (portfolio weight 3.1%) released a slightly weaker set of results than its peers, most of the operating updates were well flagged ahead of the announcement. Having made good progress to date, the Fund Manager continues to believe in the CEO's strategy to 'Fix, Accelerate and Scale' the business. Lawrence Hutchings, CEO of Workspace said, “As you can see, we are 120% focused and moving at pace to address the occupancy challenge. Importantly, we're making progress, but we appreciate we have a lot of work to do.”

The Fund Manager remains optimistic about the Fund’s performance with continued M&A activity, along with the strong underlying performance of portfolio assets and confidence in the mega trends. 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.

*MSCI UK IMI Core Real Estate Net Total Return GBP.
**Defined as the calendar month, as opposed to the valuation month.