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). 

Benefits of investing in the Resolution Capital Real Assets Fund

Investing in the Fund offers a number of benefits, including:

• Specialised management and proprietary research - The opportunity to benefit from the significant expertise and experience of a specialist REIT and real estate securities investment manager and access to Resolution Capital's proprietary global research and database systems;

• Access to real estate returns - By investing in listed entities, the Fund gives investors exposure to real estate assets they may not usually access directly as individuals. The Fund offers the opportunity to gain exposure to some of the best real estate assets and managers in the world;

• Diversification - By investing in a portfolio of global real estate securities, investors can benefit from improved diversification, divisibility and transparency compared with other forms of real estate investments;

• Alignment of interests - Key executives of Resolution Capital are majority owners of the business which provides stability and focus to the investment team.

• Liquidity and transaction costs - Listed real estate generally offers investors the ability to liquidate their investments more quickly than many forms of direct real estate investments. Listed real estate also involves substantially less transaction costs than direct real estate; and

• Income distributions - The potential to receive income distributions which are generally paid following the end of each half-year period and, unless otherwise instructed, reinvested as additional units in the Fund.

Risk level

Growth

Investor suitability

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.

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.

Investment style

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.

Investment objective

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.

Portfolio allocation

• 65% - 100% invested in ASX listed real estate securities.

• 0% - 20% invested in global listed REITs and real estate securities.*

• 0% - 15% invested in cash and short money market securities.

*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.