PMorgan Asset Managementâ€™s John Baker is looking to revisit UK real estate firms after cutting out stocks in the build-up to the June 23 referendum. The co-manager on the Â£169m JPMorgan UK Dynamic fund said he and fellow managers Jon Ingram and Blake Crawford dropped Berkley Group and British Land ahead of the vote, hedging against a Brexit vote.
The move proved wise as Berkley dropped 31 per cent in the immediate aftermath and remains 22 per cent down on the pre-vote price. Likewise, British Land fell 29 per cent and is still 19 per cent lower.
Mr Baker said that he would consider adding property names back in as the trio attempt to bring the fundâ€™s performance back in line with its peers. The higher-risk equity strategy has struggled in the past year, underperforming peers and the FTSE 100 index.
He said the cheaper share prices would provide a good entry point if economic data continued to beat expectations. The team are studying land developer Taylor Wimpey due to its stronger-than-anticipated results since the vote.
The manager said it was still too early to fully assess the long-term impact of Brexit on the economy, but he remained optimistic given data released so far.
â€œIf the positive news flow continues to remain in place around the housebuilders, one could argue that they represent value at these levels. Theyâ€™re all trading at low price-to-earnings ratios and offering attractive dividend prospects as well,â€ Mr Baker said.
â€œThe Armageddon that was initially forecast does not look like itâ€™s playing out and, in actual fact, weâ€™ve seen some economists revising their GDP expectations upwards for 2017.â€
just seen a article on lse Taylor wimpey page written 7hours a go JPM UK dynamics team mulls property return worth a read looks like they are going back into Berkeley British land which they dropped before brexit also looking at TW if data from the builders continue to be ok
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