Investment Approach

Our purpose is enshrined in our investment approach, which comprises our investment philosophy (“how we think about investing”), our investment culture (“how we behave as investors”) and our investment process (“how we invest”). We refer to this as “thinking”, “being” and “doing”.

This Is Us

Investment Philosophy “Thinking”

Our investment philosophy contends that income is the driving force behind real estate investment. Income has comprised approximately 80% of property’s total returns over the last 35 years.

We seek to build portfolios for our client investors that provide resilient and sustainable income returns. We target assets that, when diversified, provide a mix of income protection, growth and creation.

We tailor income profiles to the client's risk profile. For core investors, we focus on income protection and growth through high quality income and vacancy mitigation with assets likely to meet current and future occupier needs. For clients with a higher risk tolerance, we apply greater focus on capital value enhancement through income creation by focusing on assets with shorter leases with extension potential that provide opportunities to improve an asset through refurbishment and the development of additional space.

Risk Return Graph

We believe a thematic approach focused on the long-term real estate demand drivers enables better understanding of the needs of occupiers and how these will change. With this insight, we invest with conviction and have the confidence to be largely unconstrained in our approach.

Investment in real estate requires long term commitment. We understand that long-term value is maximised when our investments allow us to own or create resilient real estate that is adaptable to change. Because income generation requires occupational demand, sustained income preservation and ongoing growth necessitates stewardship over the land and property that we manage. Our philosophy commits us to continuously align our holdings to positive economic, environmental and societal outcomes to ensure enduring occupier appeal.

Investment Culture “Being”

Our investment culture determines how we behave, and it is the fundamental link between how we think about investing and how we invest. They say, “culture eats strategy for breakfast”, meaning if there is no cultural alignment in a business’s behaviour then processes will fail.

Our emphasis on the power of a shared investment culture is built on the following four commitments:

  1. We are investor-focussed.  The investor is placed at the centre of our business and we build long term strategic partnerships by putting investors’ needs first, communicating well and taking a long-term approach. We are in it for the long run and have processes in place that govern client care and communications to ensure that client requirements are being met.

  2. We are performance driven.  We undertake disciplined investment to meet our investor requirements and maintain our consistently strong performance track record. We take full accountability for the performance of our mandates. We have a robust investment governance framework to ensure performance and risks are closely monitored.

  3. We promote a positive working environment.  Advent Capital Investments Ltd is a place of opportunity for our colleagues and we believe an emphasis on teamwork, mentoring and shared best practice engenders trust, respect, and fun, which in turn produces a high performing business. We actively encourage and reward the positive behaviours outlined above.

  4. We are responsible investors.  This determines the way we interact with stakeholders – our customers, our advisors, the communities in which we invest and the environment. With our focus on stewardship and the highest standards of governance we seek to generate sustainable value for our investors, which goes beyond positive investment performance. This is reflected in our approach to ESG and our responsible investment policies, which are long established.

These four investment culture commitments support our purpose. Purpose ensures that we behave and invest with authenticity on behalf of our investors, which, in these days of short-termism, is in short supply. This is the commitment we make to our investors and stakeholders. Accordingly, our stewardship approach is built on trust, transparency and generating sustainable value.

Investment Process “Doing”

Our investment process details how we put the founding principles of our way of thinking (our philosophy) and being (our culture). Our investment process is highly disciplined and comprises both “top-down” and “bottom-up elements”: