The Fund fell by 4.4% over the month slightly underperforming the S&P/ASX 300 AREIT Index. AREITs suffered over the month due to the Australian 10 year bond rates rising 16 basis points providing a headwind for the yield-sensitive real estate sector. With the RBA’s decision to hold rates steady over the month and maintain its accommodative stance, we expect this to provide support for the sector over the medium to long-term. The Fund’s exposure to real estate fund managers such as Charter Hall Group (CHC) and Centuria Group (CNI) had a negative impact, whilst our residential exposure in Cedar Woods (CWP) and Ingenia Group (INA) contributed to performance.
The Fund fell by 4.4% over the month slightly underperforming the S&P/ASX 300 AREIT Index. AREITs suffered over the month due to the Australian 10 year bond rates rising 16 basis points providing a headwind for the yield sensitive real estate sector. With the RBA’s decision to hold rates steady over the month and maintain its accommodative stance, we expect this to provide support for the sector over the medium to long-term. The Fund’s exposure to real estate fund managers such as Charter Hall Group (CHC) and Centuria Group (CNI) had a negative impact, whilst our residential exposure in Cedar Woods (CWP) and Ingenia Group (INA) contributed to performance.
As structural and secular trends are disrupting the retail, office and industrial sectors, these trends are also supporting the emergence of alternative sectors. In Australia, the emergence of these alternative sectors is still at an early phase that will drive growth opportunities for many years to come.
The AREIT sector is increasingly gaining exposure to structural themes that will likely play an important role in the 21st-century economy – these include increased data usage, e-commerce, logistics, growth in infrastructure spending and renewable energy sources.
Currently, the AREIT market is still very much dominated by the core sectors such as retail, office and industrial – making up 94% of the index compared to alternative assets of only 6%. This is in significant contrast to global peers, particularly in the US and UK where alternative sectors make up more than 50% of the index.
We believe Australia will follow these established trends for the following reasons:
Our Fund recognises the importance of these secular and structural themes. The ability to invest outside the index allows us to identify these investment opportunities. Currently, the fund has close to 40% invested in non-index stocks with exposure to logistics, childcare, retirement living, data centres, storage and manufactured housing.
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Centuria Capital | Australia | Asset Management & Custody Banks |
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Charter Hall Group | Australia | Diversified REITs |
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Dexus | Australia | Office REITs |
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Goodman Group | Australia | Industrial REITs |
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Mirvac Group Property Trust | Australia | Diversified REITs |
1 Month | SINCE INCEPTION2 | |
---|---|---|
Fund | -4.4% | 10.6% |
Benchmark | -4.1% | -9.1% |
The Fund fell by 4.4% over the month slightly underperforming the S&P/ASX 300 AREIT Index. AREITs suffered over the month due to the Australian 10 year bond rates rising 16 basis points providing a headwind for the yield sensitive real estate sector. With the RBA’s decision to hold rates steady over the month and maintain its accommodative stance, we expect this to provide support for the sector over the medium to long-term. The Fund’s exposure to real estate fund managers such as Charter Hall Group (CHC) and Centuria Group (CNI) had a negative impact, whilst our residential exposure in Cedar Woods (CWP) and Ingenia Group (INA) contributed to performance.
As structural and secular trends are disrupting the retail, office and industrial sectors, these trends are also supporting the emergence of alternative sectors. In Australia, the emergence of these alternative sectors is still at an early phase that will drive growth opportunities for many years to come.
The AREIT sector is increasingly gaining exposure to structural themes that will likely play an important role in the 21st-century economy – these include increased data usage, e-commerce, logistics, growth in infrastructure spending and renewable energy sources.
Currently, the AREIT market is still very much dominated by the core sectors such as retail, office and industrial – making up 94% of the index compared to alternative assets of only 6%. This is in significant contrast to global peers, particularly in the US and UK where alternative sectors make up more than 50% of the index.
We believe Australia will follow these established trends for the following reasons:
Our Fund recognises the importance of these secular and structural themes. The ability to invest outside the index allows us to identify these investment opportunities. Currently, the fund has close to 40% invested in non-index stocks with exposure to logistics, childcare, retirement living, data centres, storage and manufactured housing.
NUMBER OF STOCKS | 16 |
MAXIMUM DRAW DOWN | -15.8% |
Portfolio Manager
Investment Specialist
A Property Fund focussed on capital security, income yield, and sustainable growth.
The Fund believes each security has an underlying or intrinsic value and that securities become mispriced at times relative to their value and each other.
The Fund seeks to exploit such market inefficiencies by employing an active, value based investment style to capture the underlying cashflows generated from real estate assets and/or real estate businesses.
The Fund believes that responsible investing is important to generate long term sustainable returns. Incorporating ESG factors along-side financial measures provides a complete view of the risk/return characteristics of our property investments.
The Fund is benchmark unaware. All positions are high conviction and assessed on a risk-reward basis, resulting in a concentrated portfolio of 10-20 securities.
1. Net performance figures are shown after all fees and expenses, and assume reinvestment of distributions. Past performance is not a reliable indicator of future performance, the value of investments can go up and down.
2. Inception 11 March 2020.
3. Annualised standard deviation since inception.
4. Relative to S&P/ASX 300 A-REIT TotalReturn Index.
* For further information regarding fees please see the PDS available on our website.