Benefits of investing in the Charter Hall Maxim Property Securities Fund

An investment in the Fund offers the following significant benefits:

• Access to a high conviction active investment strategy, with focused research and investment processes, that seek to provide higher returns with lower volatility than the market by building a portfolio based on individual merit and not by benchmark weights;

• Access to the extensive experience of Charter Hall Maxim to manage the Fund's investments as well as access to Charter Hall's direct property experience;

• Exposure to property as the Fund provides access to a diversified portfolio of quality ASX-listed property securities which own office, retail, industrial, residential and property-related social infrastructure assets;

• A capacity limit of 1.0% of the market capitalisation of the S&P/ASX 300 A-REIT Index to enable the Fund to take active positions in smaller securities and allow more efficient management of re-weightings between individual securities; and

• Quarterly distributions which can be reinvested in the Fund or can be paid to your nominated Australian or New Zealand financial institution account.

Risk level

Medium

About the Fund

The Charter Hall Maxim Property Securities Fund (formerly Folkestone Maxim A-REIT Securities Fund) is a high conviction, actively managed fund. 

It gives investors exposure to a mix of quality listed A-REITs that own assets across the retail, residential, commercial, industrial and real estate related social infrastructure sectors.

Investment objectives

The aim is to outperform the S&P/ASX 300 A-REIT Accumulation Index by 1.5% p.a. over rolling 3 year periods whilst also aiming to achieve a balance between growth in the value of your Units as well as income from your investment. The returns from the Fund are not guaranteed. 

The Charter Hall Maxim Property Securities Fund utilises a disciplined investment process combining in-depth fundamental research with disciplined portfolio construction and risk controls with the aim of adding consistent value over time. 

The basic premise of Charter Hall Maxim Property Securities Fund's investment philosophy is that there is a close relationship between the real estate market cycle and the economic cycle.

Investment process

The investment process begins with a top-down analysis of economic environment and each of the major real estate sectors and geographic sub-markets.

We believe the integration of quality research on the economic environment, capital markets and market pricing trends is critical to our decision making framework and gives us the ability to add value by identifying investment opportunities ahead of the market. 

The approach includes estimates of the listed property securities yield, the net present value, net tangible assets, and gearing. Qualitative factors are also evaluated, including asset quality and management. 

The combination of our research and proven investment process ensures we maintain our high conviction approach to the management of the Fund, and avoid being labelled an Index hugger.

How we invest your money

The Fund will give you exposure to a varying mix of listed A-REITs across but not limited to the retail, residential, commercial, hotel, industrial and real estate related social infrastructure sectors. The Fund may also invest in a selected range of other assets including listed property related securities, international listed property securities, cash and fixed interest. Charter Hall Maxim will make decisions about buying and selling investments of the Fund daily (often called active management), selecting individual investments and also changing the mix of the types of investments.

Charter Hall Maxim will actively adjust the investment mix within the investment guideline ranges below. The "target position is the start position for formulating the portfolio structure. Generally speaking, the target position is intended to be the investment mix of the Fund.

Asset allocation

(Min-Max / Target)

• Australian Listed A-REITs and Listed Property Developers and Managers: 80-100% / 95%

• International Listed REITs: 0-10% / 0%

• Cash and Fixed Interest: 0-10% / 5%