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March, 2024

Andrew Parsons Interview: The investment opportunity relevant today, tomorrow and 10 years from now

While the sector is going through a rough patch, Resolution Capital’s Andrew Parsons thinks Global REITs can make a comeback.

The Resolution Capital Global Property Securities Fund (Managed Fund) (ASX: RCAP) is the only actively managed global REITs ETF available on the ASX and it focuses is on giving investors the “opportunity to gain exposure to some of the world’s best underlying real estate in a listed form”, says Chief Investment Officer Andrew Parsons.

What’s more, Parsons believes the opportunity in global real estate is being overlooked right now.

He acknowledges that while the sector has been going through a rough patch, he has seen this movie before in a career that stretches back to the 1980s. While some will always chase the newest, hottest thing, he reminds everyone that “real estate is a durable investment that, through time, we think will deliver competitive long-term returns, with a very good income component”.

“This current lack of interest is a great opportunity for investors who are off chasing the high flyers and overlooking what we think to be some really good value”, he adds.

Parsons also highlights that RCAP aims to identify real estate that will generate superior long-term performance because of limited supply. Such properties generate robust tenant demand, and as a consequence, “we expect to see rental growth at least in line with inflation”.

In the following Fund in Focus, Parsons further outlines the investment philosophy underpinning RCAP, explains why he still likes bricks and mortar, and shares how an ageing population is creating an undeniable opportunity for investors.

Parsons also outlines how investors might use RCAP in a portfolio, noting that great property in the right location is;

“Going to be relevant today, relevant tomorrow, relevant in 10 years’ time”.


This article was first published on Livewire Markets


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