
Ordinary Shares

Price (p)	149.40
Published NAV	171.60
Yield	3.89
Discount	-13.84

Prices correct as of close 2010-09-09. Last Published NAV is as at the previous business day. Source: Trustnet

Sigma Shares

Price (p)	66.90
Published NAV	88.60
Yield	2.99
Discount	-25.20

Prices correct as of close 2010-09-09. Last Published NAV is as at the previous business day. Source: Trustnet

For Sigma Shares

March 2010
Small Cap Pan European real estate stocks rose +5.4% (capital only, GBP) in March bringing the Q1 2010 total return to +7.1%. This compares favourably with the complete FTSE EPRA / NAREIT index, including the largest (+£1bn market cap) 15 stocks, which returned +4.0% in Q1. Sigma’s year end is 31st March and the small cap index has risen 70.0% over the last 12 months, again comfortably exceeding the FTSE EPRA / NAREIT index total return of +60.6%. Sigma’s return in the month was +6.8%, this relative outperformance reflected both stock selection and the use of gearing. The fund has drawn fully on its £10m loan from RBS as well as its share of the existing debenture (£2.85m). The strongest performing countries in the month were Austria (+17.9%) and Finland (+13.4%). The fund has significant exposure to Conwert, a Vienna based residential owner and developer. In Finland, our large position in Citycon (+9.2%) outweighed our underweight in Sponda (+12.7%). The dividend payment season is underway and 16 (out of 79) companies went ex in the month. As reported in previous months, the sector has broadly reported better than expected payouts. In some cases this was maintaining a dividend when investors expected a cut or in some instances increasing the amount. Stock performance in the run up to ex dates clearly reflects investors’ desire for income. The outperformance in Sweden (+8.5%) continued the stellar returns in February and was aided by dividend ex dates in three large companies, Fabege, Castellum and Hufvudstaden. Swedish companies pay once a year. The Netherlands was also a strong performer (+6.7%) on the back of a group dividend yield of 5.8% with 5 companies paying in March and April. Greece remained the worst performing country (-3.9%) bringing its quarterly loss to -16.5%. Investors focus continues to rotate from financial leverage to real estate fundamentals and operational leverage. The strong performance of the Central London focused stocks, particularly Great Portland (+11.8%) and Minerva (+19.1%), which has two large City office developments nearing completion; reflect the continuation of improving sentiment towards this submarket. The fund paid a second interim dividend of 1.1p on 1st April (ex 10th March) which brings dividends paid to 2p per share (equal to last year). The discount continues to be in the region of 25%.