Register  
Global property revival
Thursday, 2 April 2009 12:40pm
By Ruth Liew  |  In Investment

Local investors are dipping their toes back into property market but are opting for well-diversified global property trusts instead of concentrated A-REITs.

According to Mick O'Brien, chief executive of Invesco Australia, the firm continues to receive inflows into its Invesco Wholesale Global Property Securities Fund in the past six months despite the battering that hit the sector.

Money is now starting to flow in more substantially into Invesco's existing mandates, he said.

Placing his faith in the global real estate investment trust arena, O'Brien believes that both retail and institutional investors will start viewing G-REITs as the stronger sector to provide diversity and higher returns.

"What we've seen over the last three years is [super funds] increasingly transitioning their AREIT exposure cross to global REITs.

"Some of them have the approach of a 50/50 position, some to 70/30 and some up to 100 per cent into global REITs. They just include Australian securities in that [100 per cent] global mandate," said O'Brien.

Investors being burnt by the A-REIT plummet last year can not only attribute their pain to high gearing levels but the lack of diversity and stapled securities of many funds. In turn, G-REITs are able to give investors a better diversification base with exposure to markets in Europe, emerging markets and the US, for instance said Mark Blackburn managing director and portfolio manager, Invesco Real Estate Securities team.

As for which stocks represent the best value for investors at the moment, Blackburn advises there are opportunities in all corners of the globe as property price corrections start to fall in place.

Now the ball is in the investor court - it's up to both retail and insto investors to take further steps in cashing in on the discounts.

"There's opportunity for value everywhere. The issue we're facing today is not a real estate problem - it's a capital markets and economic problem."

"There's discounts all across the globe, but the issue of realising that discount is not a real estate dymanic, it's a macroeconomic and capital markets dynamic that has to improve before we can represent that real estate is migrating towards that intrinsic opportunity," said Blackburn.

The Invesco wholesale property securities fund's top three country exposures are the US (52 per cent), France (9.9 per cent) and Japan (9.7 per cent).

But like many of its global listed property fund manager counterparts, the firm posted hefty double digit losses last year at 55.8 per cent, against the benchmark's 58.3 per cent.

Blogs
Follow the industry experts.
Christopher Page
Christopher Page
Managing Director

Breaking out from the FoFA catch-22
Ever since the first draft of the Future of Financial Advice (FoFA) legislation came out, the advice sector has been trapped in a very ...read more
 
Benjamin Ong
Benjamin Ong
Chief Economist

Reflation, rotation and the taper
'Tis being my final type (drivel, to some gentle readers) for the year, we'll take a look back at the 2013 that was to seek the lessons ... read more
 
Alex Dunnin
Alex Dunnin
Director of Research & Editorial Services

MySuper: our verdict is in
Has MySuper worked? Has it lowered fees, simplified superannuation products, lifted returns and made people better off? Yes, yes ... read more
News Search   
VideoBrought to you by
Introduction to Series #07
What are the key challenges advisers face when building retirement portfolios for clients? Watch Joe Fernandes, Head of Global Investment Solutions at Colonial First State Global Asset Management. Watch video
The New Neutral
At this year's PIMCO Secular Forum, the company's global executives set themselves the challenge of taking a three to five year view and anticipate where the market would be against what investors would ... Watch video
Colonial First State Multi-Asset Real Return Fund
Find out more about the investment philosophy and objective of the Colonial First State Multi-Asset Real Return Fund. Senior Portfolio Manager, Kej Somaia explains. Watch video
Managed Accounts Forum 2014 Highlights
Around 150 delegates attended Financial Standard's inaugural Best Practice Forum in Managed Accounts held in Sydney in August. Financial Standard also launched a new magazine: FS Managed ... Watch video
Why Multi-Asset Solutions?
Joe Fernandes, Head of Global Investment Solutions at Colonial First State Global Asset Management talks about the advantages of objective-based investing in the multi-asset space. Watch video
Get it
Daily
FREE to your inbox, get the Financial Standard Daily Email.
Get the Free
iPad app
Download the Financial Standard iPad app for FREE
Industry
Events
OCT
01
OCT
07
Major Market Players Symposium
14
Unlock the value of diversification with mFund
15
Investment Performance Measurement, Attribution & Risk Management
16
Unlock the value of diversification with mFund
20
Family Office Forum
News
Bites

$245 (inc GST) for 1 year
 
 
Copyright © 1992-2014 Rainmaker Group
All material on this site is subject to copyright. All rights reserved. No part of this material may be reproduced, translated, transmitted, framed or stored in a retrieval system for public or private use without the written permission of the publisher.
Link to something opKZ0aA7