wherein individual Portfolio Managers hold 25 to 35 stocks each. The Fund’s objective is to exceed the total returns of the Benchmark (FTSE EPRA/NAREIT Developed Index (AUD) Net TRI) after fees on a rolling 3-year basis.
Downside Risks:
- Deterioration in Global economy, especially the property market (deterioration of property prices and fundamentals).
- The Portfolio Manager/analysts miss-calculate their bottom-up valuation.
- Softening in bond yields negatively impacting pricing.
- Key person risks, i.e. Andrew Parsons, Marco Colantonio, Robert Promisel, Julian Campbell-Wood and members of the investment team.
- risk.
Fund Performance & Current Positioning:
| (%) | Fund | Benchmark | Out-performance |
| 1-month | 2.64% | 1.90% | +0.74% |
| 3-months | 14.10% | 12.29% | +1.81% |
| 1-year | 26.67% | 34.93% | -8.26% |
| 3-year (p.a.) | 9.68% | 7.18% | +2.50% |
| 5-year (p.a.) | 8.65% | 6.16% | +2.49% |
| Since Inception (p.a.) | 13.48% | 12.33% | +1.15% |
(Source: Resolution Capital)
Fund Positioning:
| Stock | Sector | Listing | % of portfolio* |
| Prologis | Industrial | US | 8.10% |
| Invitation Homes | Residential | US | 6.50% |
| Welltower | Healthcare | US | 4.70% |
| Kimco Realty Corporation | Retail | US | 4.20% |
| Equinix | Data Centres | US | 4.10% |
| Essex Property Trust | Residential | US | 3.60% |
| Canadian Apartment Properties | Residential | Canada | 3.10% |
| Kilroy Realty Corporation | Office | US | 3.10% |
| CubeSmart | Self-Storage | US | 2.90% |
| Mitsubishi Estate Company | Office | Japan | 2.80% |
| Total | 43.10% |
(Source: Resolution Capital)
Key Highlights:
- Investment Team:
The investment team is well-resourced with strong credentials and investment experience and is appropriately aligned and remunerated. The PMs have strong credentials and lengthy experience in real estate: Andrew Parsons, Marco Colantonio, Robert Promisel, have at least 30 years industry experience whilst Julian Campbell-Wood has 17 years’ experience. Performance reviews are conducted twice per year and based on Investment performance of all client Funds strategies, Research analysis and outcomes, Compliance with mandate guidelines and Adherence to ESG policies.
- Investment Philosophy and Process:
In our view, the Fund adopts the bottom-up stock picking fundamental process that most other peers typically follow. A key advantage in the fund’s investment process is the utilisation of their proprietary database to collate their research that enables cross comparisons among regions and sectors to highlight any discrepancies.
- Performance:
Although past performance is not an indicator for future performance, it is an indicator of whether the Fund’s strategy has worked in the past. Although the Fund has performed well on an absolute basis, the Fund has underperformed relative to its benchmark in the past year by -8.3%. Nevertheless, over 3- and 5-year, and since inception, the fund has performed well relative to the benchmark.
- Association with Pinnacle is a positive:
ASX-listed Pinnacle Investment Management holds a minority 44.5% stake in Resolution Capital whilst key staff own the remaining 55.5%. Pinnacle provides support via distribution and administration services, which is viewed as positive.
About the Fund:
The Resolution Capital Global Property Securities Fund (Unhedged) – Series II provides exposure to a diversified portfolio of stocks within a range of real estate sectors across developed markets (North America, U.K, Europe, and Asia Pacific). The Fund’s objective is to exceed the total returns of the Benchmark (FTSE EPRA/NAREIT Developed Index (AUD) Net TRI) after fees on a rolling 3-year basis.
General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.
