01 September 2019
Launch of Resolution Capital Real Assets Fund
Resolution Capital launches the “Resolution Capital Real Assets Fund” after gaining unitholder approval to change the investment strategy of the Resolution Capital Core Plus Property Securities Fund.
The new strategy will allow up to 50% of the Fund’s portfolio by gross asset value to be invested in Australian Listed Infrastructure (ALI) securities and up to 20% in Global listed real estate securities and Global Listed Infrastructure.
Atleast 50% of the Fund’s portfolio by gross asset value (GAV) will continue to be invested in Australian Real Estate securities (A-REITs).
The Management fees for the fund will be reduced from 0.70% p.a. to 0.65% p.a.
The Resolution Capital Core Plus Property Securities Fund has today re-launched as the Resolution Capital Real Assets Fund (the Fund).
Following careful review by the award-winning Resolution Capital investment team, the strategy of the Core Plus Property Securities Fund has been modified to include listed infrastructure securities – resulting in the name change and re-launch.
Andrew Parsons, Resolution Capital Chief Investment Officer, said expanding the Fund’s investment universe to include listed infrastructure securities is likely to improve the diversification and the risk-adjusted return profile of the fund.
“The team has been investing in A-REITs since 1995 and has delivered an exceptional long term investment track record. We view the Real Assets strategy as a natural evolution of our investment strategy. In 2005 we added the ability to invest in select Global Real Estate securities to the mandate to reduce concentration risk within the A-REIT sector, which has benefited the portfolio’s relative performance,” said Mr Parsons.
“We expect that the addition of ALI, which offers exposure to underlying assets with monopolistic characteristics, underpinning reliable earnings growth, will similarly result in better investment outcomes for our clients.
“Australia is one of the fastest growing developed countries and two core elements which underpin a developed country’s growth are property and infrastructure.
“We believe the best way for investors to gain exposure to Australia’s growth and urbanisation is through a diverse portfolio of high-quality A-REITs and Australian Listed Infrastructure.
“Australia’s growth and urbanisation is an opportunity the Resolution Capital Real Assets Fund aims to exploit in order to generate annual total investor returns exceeding the S&P/ASX300 AREIT Accumulation Index, but with improved diversification.
“Our investment in the offices, roads, warehouses, airports, pipelines and shops that underpin our nation is an investment we believe all Australians should have the opportunity to be part of.”
The management fees for the Fund will be reduced from 0.70% p.a. to 0.65% p.a and there will be no changes to how the performance fee is calculated. Resolution Capital’s performance fee requires the fund to out perform the benchmark and, notably, produce a positive total return.
The listed infrastructure investment strategy change only applies to the Resolution CapitalCore Plus Property Securities Fund. There are no changes to any of Resolution Capital’s other funds.
About Resolution Capital:
Resolution Capital is a specialist global real estate securities manager with a successful long-term investment track record and ardent culture of fiduciary responsibility. The firm was established in 2004 and is headquartered in Sydney, Australia and maintains an office in New York. We believe that listed real estate is an excellent means of gaining exposure to the underlying returns of some of the world’s highest quality real estate assets in a simple, transparent, liquid and tax efficient form.
Pinnacle Funds Services Limited ABN 29 082 494 362 AFSL 238371 (‘Pinnalce’) is the Responsible Entity and product issuer of the Resolution Capital Real Assets Fund ARSN 131 850 363 (‘the Fund’). The Product Disclosure Statement (‘PDS’) of the Fund(s) is available at www.rescap.com/realassetsfund. Any potential investor should consider the relevant PDS before deciding whether to acquire, or continue to hold units in, a fund.This document is prepared by Pinnacle as the product issuer and Responsible Entity.Resolution Capital Limited ABN 50 108 584 167 AFSL 274491 is the investment manager of the Fund(s). Past performance is for illustrative purposes only and is not indicative of future performance. This communication is for general information only and was prepared for multiple distribution.
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