Resolution Capital Real Assets Fund
About this Fund
|FUND MANAGER||Resolution Capital Limited|
The Fund invests primarily in “AREITs” and real estate securities (minimum of 50% of the portfolio), but also has the ability to invest in “ALI” and up to 20% of the portfolio may be invested in global listed real estate and infrastructure securities (global portion).
|INVESTMENT PROFILE||The Core Plus Fund's investment objective is to exceed the total returns of the Benchmark after fees on a rolling 3 year basis.|
|CURRENCY MANAGEMENT||Active management|
|BENCHMARK||S&P/ASX 300 A-REIT Accumulation Index|
|FUND SIZE||S&P/ASX 300 A-REIT Accumulation Index|
|NO. OF HOLDINGS|
Benefits of investing in the Resolution Capital Real Assets Fund
Investing in the Fund offers a number of benefits, including:
An investment in the Fund may suit you if you are seeking a medium to long-term investment in Australian and global REITs and other real estate securities with the potential for income distributions and capital growth.
|RISK LEVEL||High - Very High|
For investors who are prepared to take more risk in exchange for potentially higher returns on their investments over the longer term. Investors are should be comfortable with volatility and with the possibility of negative returns
About the Fund
The Resolution Capital Core Plus Property Securities Fund (the Core Plus Fund') gives Investors access to the benefits of listed real estate diversification through a professionally managed portfolio of Australian Real Estate Investment Trusts (A-REITs'). Resolution Capital seeks to further enhance returns by investing up to 20% of the Core Plus Fund in real estate securities listed offshore.
The Core Plus Fund will invest in a diversified portfolio of Australian Real Estate Investment Trusts (A-REITs), in addition it may invest up to 20% of the Fund in real estate securities listed offshore. The offshore component draws off our highest conviction ideas from our team of highly experienced global portfolio managers. Domestic and global stocks are evaluated on a consistent basis, with the decision to allocate to global stocks based on the assessment of the relative risk and return of the stocks in each market.
The Core Plus Fund's investment objective is to exceed the total returns of the Benchmark after fees on a rolling 3 year basis. In doing so, the Core Plus Fund aims to provide Investors with a level of distributable income combined with the potential for long term capital growth sourced from real estate based revenue streams. Resolution Capital intends to hedge the capital component of the Fund.
How we invest your money
The Fund primarily invests in Australian listed REITs (AREITs') and real estate securities but also has the ability to invest up to 20% of the portfolio in similar securities listed on global exchanges. The AREIT component is focused on identifying relative value opportunities within the Australian universe. The flexibility to allocate to global listed REITs and real estate securities, provides a means of diversification and enhancement of returns.
The global component draws off Resolution Capital's highest conviction ideas from the team of experienced global portfolio managers. Australian and global stocks are evaluated on a consistent basis with our decision to invest based on our assessment of relative risk and return.
The Fund invests in REITs and real estate securities that source most of their returns from rental income, but will also have some exposure to cash. The Fund's investments provide exposure to a range of underlying real estate including office buildings, shopping centres, industrial warehouses, residential communities, hotels and healthcare facilities. The Fund may also have exposure to companies which undertake real estate development, real estate construction contracting and real estate funds management activities.
*The Fund also holds foreign exchange contracts for hedging purposes and these contracts represent a negligible percentage of the Fund's portfolio.
Resolution Capital intends to mitigate currency risk through hedging the capital component of the Fund's exposure to global real estate securities, and may also hedge currency exposure arising from income receivable from global real estate securities at its discretion. From time to time the Fund may accept unhedged or over-hedged exposures, but hedging will not be undertaken in a currency where there is no underlying physical investment. Currency hedging may impact the level of income distributions.