High-quality listed real estate
Quality is key in seeking to deliver sustainable long-term returns
Bottom-up process
Investing in a range of property sectors and securities across multiple regions
Global specialist team
Boots on the ground in five key global cities
We believe:
- successful global real estate investment requires a globally integrated, rigorous, and disciplined investment approach
- local expertise is key in understanding local trends and changing market conditions
- in the long term, real estate securities supported by sustainable business models and quality assets, run by experienced and capable management teams, should outperform over time
- in the short term, a flexible approach to valuation is needed to take advantage of mispricing of assets between regions, countries, sectors, and stocks
- risk is prevalent across a range of variables and needs to be carefully assessed at each point in the process.
Daily liquidity
- Over the medium to long term, listed real estate is driven by the same brick-and-mortar economic fundamentals as the unlisted real estate market, but it is generally accessible on a daily basis.
Exposure to global mega trends
- Listed real estate is a beneficiary of global demographic and secular trends such as aging populations, ecommerce, and digitalisation and provides immediate access.
Inflation hedge
- Earnings and dividends may be underwritten by contractual leases that are protected against inflation via annual increases to some of the strongest tenants in the world (governments and investment grade corporates). This helps provide the asset class with security of cash flow, earnings, and reliable income.
Greater diversification
- Real estate securities have the potential to be diversifiers in balanced portfolios and may help to lower risk as part of a diversified portfolio.
Our investment process consists of a fundamental, bottom-up (stock-by-stock), valuation-based stock selection methodology complemented by secondary top-down considerations.
A comprehensive and detailed research driven approach is a key element of our investment process. Our globally integrated approach applies a rigorous focus on bottom-up company fundamentals. Analysts with primary coverage of a company are further complemented by team members with secondary coverage of the same company, which encourages peer review and debate. Bottom-up fundamental research is central in producing the measures used to identify and rank securities suitable for investment.
For more information on our equity capabilities
Risks
The value of an investment in the presented Strategy can go up and down. When you sell or otherwise redeem your investment it may be worth less than your original investment.
If your currency as an investor is different from the reference currency of the Strategy changes in currency exchange rates could reduce any investment gains or increase any investment losses.
The risk rating does not reflect the possible effects of unusual market conditions or large unpredictable events, which could amplify everyday risks and could trigger other risks.
Certain derivatives could increase the Strategy’s volatility or expose the Strategies to losses greater than the cost of the derivatives.
Certain securities could become hard to value, or to sell at a desired time and price. As a class, equities carry higher risks than bonds or money market instruments.
International investments – including losses related to currency exchange rates, hedging, and changes in the state of the US and world economies.
Property investments – factors such as the quality of underlying properties and geographic location may affect the Strategy’s performance.
Share market investments – the value of the Strategy’s investment in listed securities may decrease as a result of adverse share market movements.
Companies – factors such as management changes may affect a company’s performance.
Derivatives – the use of derivatives may magnify any losses incurred.
Interest rates – including the risk of capital loss in a rising interest rate environment.
Investment management – there is a risk that the investment manager will not perform to expectation or factors such as changes to the investment team or a change of investment manager may affect the Strategy’s performance.
Sector – returns may be adversely affected where the Strategy’s investments have a high exposure to a particular sector or sectors.
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