Leading APAC fund manager lists global property ETF
The Australian Securities Exchange will soon have its only actively managed portfolio of Global Listed Property Securities (also known as GREITs).
The Resolution Capital Global Property Securities Fund active-ETF will provide investors access to a portfolio of GREITs – previously unlisted – which has generated a net return of 10.3% p.a. between September 2009 and 31 December 2021.
It is set to officially list on the Australian bourse tomorrow, February 22.
Chief Investment Officer of Resolution Capital, Andrew Parsons, outlined why the firm has moved to provide access to its successful global strategy via an active-ETF.
“Members of our team have been investing in REITs for over 25 years and in Global REITs for over 15 years, and we are proud to have delivered strong and consistent through-cycle returns for our clients.
“The ETMF structure provides a convenient and accessible way for a broad set of investors, including mums and dads and other individuals, to gain exposure to a select portfolio of some of the world’s best real estate platforms with the ease of being able to buy and sell units on the ASX.
“Under the wrapper of RCAP and through the Fund’s investments in select listed Global REITs, we provide underlying exposure to what we believe to be some of the world’s best institutional grade real estate assets, which most individuals would not be able to access directly. The underlying properties are predominantly located in major cities and include a diverse range of property sectors such as logistics, data centres, life science research and medical facilities, as well as apartment buildings.”
Mr Parsons said particularly in the current market environment, an actively managed portfolio of GREITs can play a vital role in diversified investment portfolios.
“As we experience the onset of rising consumer costs, we believe select global REITs have the potential to serve as an effective hedge against inflation.
“We focus on real estate platforms with strong balance sheets and capable of demonstrating rental pricing power through superior locations and with buildings most relevant to the needs of the economy. Furthermore, the inflationary pressures means developers of new buildings face the prospect of higher costs. This gives existing property owners significant cost advantages; it moderates the supply picture and underpins asset values.”
The Resolution Capital Global Property Securities Fund (Managed Fund) aims to achieve an annual total return that exceeds the total return of the Benchmark (FTSE EPRA/NAREIT Developed Index (AUD Hedged) Net TRI) after fees on a rolling 3-year basis.
Top holdings in the active-ETF’s portfolio include, Prologis (NYSE: PLD), Welltower (NYSE: WELL), Invitation Homes (NYSE: INVH), Kimco Realty (NYSE: KIM) and Essex Property Trust (NYSE: ESS).
Resolution Capital manages over A$19 billion in assets on behalf of institutional investors, pension funds, investment platforms, and financial advisers and their clients worldwide.