The Company will seek to generate consistent income returns for shareholders by investing in a diversified portfolio of long-dated ground rents.
Schroder Real Estate Investment Management was appointed as the Alternative Investment Fund Manager (‘AIFM’) to Ground Rents Income Fund plc (‘GRIO’ or 'the Company') on 13 May 2019.
Chris joined Schroders in May 2019 from Brooks Macdonald where he was the Assistant Fund Manager for the Ground Rents Income Fund. Prior to joining Brooks Macdonald in January 2016, Chris worked at M&G where he was focused on UK equity income mandates, and Fleming Family & Partners. He started his investment management career in 2008 and holds a BSc (Hons) in Economics from University College London and a MA in International Political Economy from the University of Sheffield. Chris is a FCA Approved Person.
The investment policy of the Company is to hold a diversified portfolio of ground rents, including freeholds and head leases of residential, retail and commercial properties located in the United Kingdom.
The Company may be concentrated in a limited number of geographical regions, industry sectors, markets and/or individual positions. This may result in large changes in the value of the fund, both up and down, which may adversely impact the performance of the fund.
The Company may borrow money to invest in further investments, this is known as gearing. Gearing will increase returns if the value of the assets purchased increases in value by more than the cost of borrowing, or reduces the returns if they fail to do so.
As a result of fees being charged to capital, the distributable income of the fund may be higher but there is the potential that performance or capital value may be eroded.
The Government has been considering reforms to the residential leasehold system and building safety regime since 2017. This has created uncertainty and impacted the Company’s valuation. The final outcome of future legislation remains unclear and could negatively impact the Company’s portfolio further. The Board of the Company and Schroders as Investment Manager are working to protect shareholders’ interests and further details are contained in interim results to 31 March 2022.