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Specialist in Asia Pacific, China, India and South East Asia and Global Emerging Market equities.

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formerly Realindex Investments

Leader in active quantitative equities across Australian equities, global equities, emerging markets and global small companies.

Backed by a unique blend of research, portfolio construction and risk management, focused on uncovering original insights and translating them into investment strategies that are active and systematic, aiming to generate alpha.

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At Stewart Investors, we believe in putting people first. Our investment world-view is of a series of partnerships – with each other, with our clients, with the companies we invest in, the people who buy their goods and services, and with the wider society in which we all live and work.

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Global Property Securities

Global Property Securities

Prices & performance
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Strategy Overview

Key Facts

Entry Price:

Exit Price:

Price Date:
Issuer:
* The unit price for the Fund will be delayed temporarily given a special distribution is in progress.
*
* This is an annualised interest rate from the past seven days. For actual performance for our Cash Funds, please view the performance page.

Issuer:

Global property opportunities are built on solid ESG foundations

Confirming our portfolio net zero overlay intention has further deepened our understanding of the global property securities sector we invest in. Our continuous focus on in-depth, in-house research means we can see things differently, which has led to discoveries into new risks and opportunities. Our focus on capital preservation remains as strong as always with a preference for allocating capital to well managed assets in high barrier to entry markets in many of the world’s most bustling cities.

Total portfolio net zero carbon emissions overlay

To get the full picture of the risks and opportunities, investors need to look how companies are identifying, measuring, addressing, reducing, renewing and supplementing their carbon reduction and renewable energy ambitions, not just how they operate their assets. Putting carbon measurement and Environmental, Social and Governance factors at the centre of our process for analysing companies ensures the full picture is apparent when it comes to valuing companies and deploying capital in this segment. 

We believe the meticulous understanding of the global property securities sector we have garnered over many years has facilitated our in-depth ESG analysis.

Stephen Hayes

Head of Global Property Securities

Net Zero

Embodied CO2 p.a

9,564
tonnes

Operational CO2 p.a

6,893
tonnes

Development
Embodied Carbon

1,806
tonnes

Operational
Carbon Intensity

2023
183 kg
C02 sqm
2028
159 kg
C02 sqm

Energy Intensity

2023
77.0 MJ
per sqm
2028
50 MJ
per sqm

Solar Generation
to Energy

2028
7.9%
2023
4.1%

Energy sourced from
Renewables

2028
53.6%
2023
48%

Percentage Controlled Energy

90%

Cogeneration Energy

15.7%

Community charity foundation in place

88%
have a community
charity foundation

Board independence

73%
of independent
directors

Board diversity

29%
of directors
are female

All data is sourced from First Sentier Investors, as at March 31, 2022

FSI estimates of total portfolio carbon emissions. FSI estimates of Total portfolio operational controlled and non-controlled carbon emissions. FSI estimates of total portfolio embodied carbon emissions from development activities.

Why invest with us in global property securities?

Diversified exposure

 

Real estate security returns are driven by a combination of local real estate fundamentals and broader capital market conditions. Due to the fundamentally localised nature of real estate,asset class returns across different regions have historically been characterised by low levels of correlation, and by a lack of uniformity. This phenomenon can lead to pricing anomalies – presenting opportunities to generate excess returns by capital allocation, and regional or stock selection.

 

Our portfolio can provide access to these property assets

Central business district and suburban office buildings

Super-regional / regional / sub-regional and convenience shopping centres

Logistical warehousing

Hotels

Healthcare

Self-storage

Data centres

Retirement assets

Residential investment and development

Global team, local experts

We believe that having specialist property investors in each region is the most effective way to manage a global property securities portfolio.

As such, the team’s highly experienced regional specialists are based across the world’s major property markets to provide on-the-ground research and knowledge that allows them to assess the risks and opportunities in the asset class.

Under the leadership of Stephen Hayes, the Global Property Securities team consists of seven portfolio managers and three analysts, all of whom are focused solely on investing in publicly traded real estate securities.

They have a full understanding of stock specific endogenous risks, of the wider real estate market and of the macroeconomic conditions that can influence returns.

What are the risks?

Although all investments carry risk, the level of risk is dependent on the type of investment strategy and the underlying investments. Generally, the higher the potential return of an investment, the greater the risk.

The risks of investing in Global Property strategies include:

Company risk

Investment in equities is exposed to risks due to changes in that company or its business environment.

Equities risk

Equity securities are subject to changes in value, and their values may be more volatile than those of other asset classes.

Currency risk

For investments in international assets, which have currency exposure, there is potential for adverse movements in exchange rates to reduce their Australian dollar value.

As with any investment, there are no guarantees on the value of the investment or the income generated from it. Investors may get back less than the original amount invested. For a full description of the terms of investment and the risks, please see the Product Disclosure Statement for each fund.

Case study

Data centres - tapping internet growth via listed property

Investing in listed property stocks that own data centres - the specialist buildings which house the infrastructure required to power modern internet usage – gives investors access to one of the greatest structural shifts of our time.

Reliable data centres are expensive to build which means that the supply of new centres is well controlled. A turn-key data centre in the US can cost twice as much as an office tower to build.

This cost reflects the highly specified plant and equipment required for the data centre to have virtually no risk of down time in operations.

Data centres have a wide range of business models appealing to a diverse range of customers - from governments to telecommunication companies to vast internet-centric firms.

With the industry thematic of a high rate of adoption of the internet, together with the large growth in cloud computing, data centres with the right business model can deliver high cash flows well into the future.

Data Centres - Total Operational Floorspace 

Source: 451 Research and Digital Realty

Case study

Build to rent boom

With accelerating tenant demand now an established long-term trend, the supply of purpose-built rental accommodation has failed to keep up with vacancy rates that are very low in most global cities*.

Strong house price inflation has affected housing affordability. Purpose-built, professionally owned and managed residential rental properties are emerging, with luxury amenities like gyms, community facilities, parcel delivery and even child care being included.

Within the ‘residential for rent’ asset class, cash flows have proved stable through economic cycles, with occupancy levels typically remaining high through periods of economic slowdowns. Rents are correlated to employment and wages growth, demographic trends and supply levels. From an institutional investment perspective, we believe the returns have been competitive.

* The vacancy rates for residential real estate is 7.2 % in Paris as of December 2019 and 3.9% in New York as of June 2020. Over the past 3 years, house price inflation in London, Paris and New York has been 2.2% (to 31 March 2020), 17.3% (to 31 May 2020) and 8.7% respectively (31 March 2020). Source: The National Institute of Statistics and Economic Studies, U.S. Census Bureau, HM Land Registry, Federal Reserve Economic Data (S&P/Case-Shiller NY-New York Home Price Index).

U.S. Household Formation vs Total Housing Completions 

Source: Government data as at March 2020

Responsible investment

Our corporate responsible investment strategy is based upon three strategic pillars of quality, stewardship and engagement.

We have implemented sustainability considerations into our investment process. We believe the consideration of ESG issues will lead to better risk/return outcomes, which will ultimately improve long-term returns for investors.

Corporate governance is a particular focus, where board independence as well as respect for shareholder rights is of paramount importance. We also consider any specific sustainability initiatives implemented by a company and the environmental impact of existing assets and developments. A company's history as a good corporate citizen is taken into account, as well as evidence of meaningful contributions it might have made to benefit society more broadly.

Learn more about the Global Property Securities team's approach to responsible investment

Meet the investment team

Stephen Hayes

Head of Global Property Securities

Andrew Schaffer

Senior Portfolio Manager

Dennis Maloney

Senior Portfolio Manager

Daniela Lungu

Senior Portfolio Manager

Want to know more?

Contact your Key Account Manager