In the latest quarterly recalculation of Financial Express' quantitative Crown Rating system, the fund gained a 3 Crown Rating. Meaney said that the fund has continued to outperform the sector average due to fortunate timing, and good stock selection.
Performance of fund vs sector and IPD over 3-yrs
Source: Financial Express Analytics
"We started up in September 2007, the start of a two year decline in the market. The beauty of this was that we were the first recovery fund. We held cash whilst the market went into the deepest decline. Our competitors were in a bullish market, which is why they were left with legacy properties that performed badly, and were then faced with the pressure of redemptions. We have no such baggage."
"We have a low risk portfolio, and though people may have expected it to perform badly, it didn't. We don't buy into speculation; we focus on quality assets, and don’t buy for the sake of buying. We investigate properties, locations, tenants and various other factors."
In the past three years, the fund has been in the lowest quartile for risk in the sector.
Graham Toone, head of investment research at AFH highlighted the unpredictable nature of the market at present.
"There is no strong conviction in commercial property at this time, and this is why it is one of the most difficult asset classes to gauge. It has generally been underweighted in our client's portfolios."
As Financial Express data shows, since July the sector average has outperformed the fund, albeit with a higher rate of volatility.
Performance of fund vs sector and IPD over 1-yr
Source: Financial Express Analytics
Meaney said: "There has certainly been a degree of recovery in the market, and now we are back in with the pack. You won't see a significant outperformance on our part, but we pride ourselves on strong and steady performance. Though other funds may have had a stellar performance this year, what happens next year is another matter."
"We are 'long game' players, and analyse every asset with a great amount of detail. We are lucky in that we have up to date contacts in the market and very good quality data. Many of our competitors don't have this luxury."
Meaney also pointed out his continued bias towards assets in the South East of England as opposed to other areas in the UK.
"In London, there was an international demand for commercial property even during the downturn. There was always a range of overseas buyers as well as buyers in the UK. We are of the belief that the South East will continue to weather the storm far better. We are cautious about other regions."
"That said we are great believers that every property stands out for its own merit. For example we have assets in Glasgow as it's a good place for prime retail at present."
Principal at Norwest Consultants Harry Katz agreed that there was still scope for successful investment outside the South East.
"Property is an asset class that covers a multitude of areas. In my opinion, what the property is and who its tenants are is far more important than location. A landlord of BAE offices in Preston is likely to be rather happy at the moment, as opposed to a small factory owner in Blackburn."