Change of Benchmark

RNS Number : 8581P

TR Property Investment Trust PLC

31 March 2009

 

TR PROPERTY INVESTMENT TRUST - SIGMA SHARE CLASS

Change of Benchmark

From 1st April 2009, the Sigma share class benchmark will be FTSE EPRA/NAREIT Small Cap Europe Index in Sterling.

The Sigma share class was launched on 24th July 2007. Its objective is to invest in smaller property companies across Europe. As it was largely created through the conversion of Ordinary shares, Sigma's initial portfolio comprised a pro rata share of the listed equities within the Ordinary share class portfolio. At launch over 64% of the portfolio comprised large cap stocks (defined as companies with a market capitalisation of over £1bn). It was envisaged that the transition to smaller companies would take 3 to 6 months. Since launch the benchmark has been the same as the Ordinary share class, the FTSE EPRA/NAREIT Europe Index in Sterling. 

The transition process has taken longer than initially envisaged. The manager, with the agreement of the Board, has chosen to slow the process in response to economic and market events. However, the portfolio now has less than 30% of the net assets in large cap stocks whilst the current benchmark is close to 70% large cap. The Board has therefore decided that it is appropriate to change the benchmark so that it more accurately reflects the investment objective of the share class.

From 1st April 2009, the Sigma share class benchmark will be FTSE EPRA/NAREIT Small Cap Europe Index in Sterling. This benchmark, provided by FTSE who produce the existing benchmark, is FTSE EPRA/NAREIT Europe Index in Sterling adjusted to exclude those stocks with a market capitalisation exceeding £1bn. The constituents will be adjusted quarterly. 

'The Sigma share class has now substantially made the transition to its intended small cap portfolio. This has taken a year longer than originally anticipated due to the extremely volatile market conditions since inception which has made a defensive investment approach appropriate. The share class has in fact outperformed its existing benchmark by 547 percentage points* since launch. However it is now time to align the fund manager's long term mandate with a benchmark which gives shareholders an appropriate indication of performance against the stated objectives of the Sigma fund.' - Peter Salsbury - Chairman.

* Index and NAV on an AIC Capital Only basis

 

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