
Ordinary Shares

Price (p)	158.00
Published NAV	173.30
Yield	3.86
Discount	-9.11

Prices correct as of close 2012-02-03. Last Published NAV is as at the previous business day. Source: Trustnet

Sigma Shares

Price (p)	65.10
Published NAV	90.60
Yield	1.92
Discount	-28.83

Prices correct as of close 2012-02-03. Last Published NAV is as at the previous business day. Source: Trustnet

For Sigma Shares

November 2011
Real estate stock markets across Europe continued their slide during November.

Stocks fell precipitously in the first three weeks of the month. From 1-25 November, small cap real estate equities were down nearly 13%, only to stage an 8% recovery in the last five days.Markets remain macro driven, with events in the eurozone dominating. After the mild euphoria in the run up to the summit on 27 October, November saw investors focus on the lengthy timetable that any political solution by the 17 member states would require. As we enter December, there appears to be renewed political momentum and coordination of responses between Germany and France -the key decision makers. As we have written manytimes before, however, there is no clear timetable for the imposition of the various measures being mooted.We continue to think that this will be a long, drawn-out process.

After generating some relative gains in October the Sigma share class total return lagged the -5.6% benchmark performance (total return, GBP) in November.

While this is obviously disappointing we believe that the persistently high volatility in the stock market contributed greatly to this. Indeed, many of Sigma's stocks are relatively illiquid when compared to larger market caps such as Land Securities or Unibail. When we make a decision to invest we do so for the long-term, we are not traders of these stocks. This long-term, stock-specific approach has been ill-suited to markets since the escalation of the eurozone crisis, which have been driven by macro events both economic and political. Many real money, long-term investors have recoiled from such volatile markets, meaning that liquidity has been poor and stock markets have been dominated by investors trading on directional views, momentum and macro events. These investors often trade in whole country or sector indices, which results in all stocks in the group moving upwards or downwards together and the price movements of the most illiquid (often the smallest) stocks being amplified.

We believe this is a temporary phenomenon, albeit one that can persist for some time, and that fundamentals will reassert themselves over time.