Investment Philosophy

Stock selection and the timing of investment decisions are critical to optimising performance. Fundamentals, such as location, building type and lease terms, are also important, particularly when the market suffers a downturn.

When investment horizons permit, WFM seeks to maximise returns through a contra-cyclical approach to buying and selling. However, because the luxury of time does not exist in many of today's business scenarios, specialist knowledge and energetic working of the market are vital if opportunities are to be produced throughout the market cycle - even at the peak.

Direct property provides essential performance and diversification benefits for our institutional clients. It combines the characteristics of both bonds (with a steady and rising income flow) and equities (with the potential for capital appreciation). Its low correlation with these asset classes also greatly aids portfolio risk management. Moreover, property's relatively high yield cash return is of real benefit in meeting pension obligations.

Direct property investment has generally shown greater returns than indirect, undiluted as they are by the need to hold some assets in property shares or cash to meet redemptions. However, Wilky believes some clients will benefit from a combination of direct and indirect investments.