Professional Planner|Zenith Fund Awards 2015 – global real estate investment trusts (global REITs)
Winner: Resolution Capital
Zenith says: Zenith continues to believe Resolution is a standout manager owing to the highly regarded and stable portfolio management team. While Resolution operates under a multi-sleeved portfolio structure, each manager possesses depth of knowledge and experience. Portfolio construction is largely unconstrained, utilising a combination of bottom-up and top-down research, with each portfolio manager afforded the ability to construct his portfolio based on conviction in investment ideas. Resolution has continued to demonstrate meaningful outperformance
on an absolute and peer-relative basis.
– Sophie Gibbons, investment analyst
Zenith sector review: The global REIT sector comprises both hedged and unhedged strategies and encompasses both active and benchmark-aware managers. On an absolute basis, global REITs have demonstrated strong returns over the past 12 months, with several active managers generating meaningful alpha. This is in contrast to previous years, where active managers have struggled to outperform the benchmark. Managers’ unhedged strategies have outperformed their respective hedged counterparts, which is not surprising, given the fall in the Australian dollar over the past 12 months.
Sonia Luton, investment specialist, Resolution Capital (pictured with Zenith’s Andrew Yap): Our investment approach is more a portfolio of cities, rather than markets. We invest in key gateway markets where there’s a lot of depth of tenant demand.We’re noticing that there is starting to be increase in supply – however, definitely not at the levels you were seeing pre-GFC. Our focus is on key cities such as London, New York, West Coast [USA] – San Francisco and Los Angeles – Hong Kong, and Sydney as well. Our philosophy has always been about protecting clients’ capital. The company is majority-owned by staff; we also co-invest in our funds. So we’re all about alignment of interests with our clients. We take that very seriously. Our fundamental philosophy is focused on minimising risk and ensuring that we’ll be around in times to come.
