Schroder Global Cities Real Estate | "Choppy waters, not a full-on gale"

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  • 02 mins 28 secs
Hugo Machin, Co-Head of Global Real Estate Securities, explores why despite October being a challenging month, there are still a number of opportunities in the real estate market.



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Table was a very challenging month for markets as a whole. There's a lot of uncertainty came into the market on the back of actually very strong unemployment numbers from the united states. That prompted bond selloff, which then caused a lack of confidence in the equity markets as well for which the fund was also i'm caught up, but interestingly the areas in specifically that were problematic with that of technology on dh there, small holding that we have which relates to technology stocks, which is the data centers have not done particularly well in terms of the price performance. But it's bean morva geo political issue rather than a stock specific issue. So it's being very much caught up with the trade differences particular between the united states and china on the holdings that we have the companies that were invested in in china. Despite the fact that the market has been challenging, we still see strong fundamentals. We've written a number of pieces which are on the website about the urbanization in china and particularly in that what we would describe as the meta cities on. We've also written about the strength ofthe online shopping or mobile commerce with regard to companies that we invest in, particularly in the data center space. So it's the data center companies that have exposure to china that have not fared particularly well. But the fundamentals are still strong. In our view, we still see huge take up in terms ofthe use for mobile commerce. We still see huge amount of central government spending into very specific chinese cities, which we are targeting in terms of our investments on behalf of clients. So for us, this feels more like some choppy waters rather than gail on dh. That's really how i would characterize october for the fund.