Close

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

Discover more
Close

Stewart Investors manage investment portfolios on behalf of our clients over the long term and have held shares in some companies for over 20 years. They launched their first investment strategy in 1988.

Discover more
Close

Leader in systematic equities across market cap weighted indices, smart beta and active quantitative strategies

Discover more

Global property securities

Global property securities

Since 1989, we have managed funds under the Colonial First State brand. Fund names are changing to reflect our new name, First Sentier Investors.

Prices & performance
Show fund factsheets & data

Open

Strategy Overview

Key Facts

Entry Price:

Exit Price:

Price Date:
*
* This is an annualised interest rate from the past seven days. For actual performance for our Cash Funds, please view the performance page.

Property markets are constantly evolving – and so are the investment opportunities.

Based in some of the world’s most vibrant property markets, our team blends global analysis of the trends redefining the way we live and work, together with local perspectives of how this plays out for each stock. With a focus on capital preservation, we invest in well managed assets in high barrier to entry markets in many of the world’s bustling cities.

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 property assets such as:

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 realestate 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.

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

Adviser Resources

The evolution of our cities

Global city populations continue to grow, driven by urbanisation. The provision of housing for growing populations is a major challenge for many countries and cities.

Property opportunities on campus

Educational institutions have traditionally provided students with access to accommodation on or near campus, but in recent years, student housing has increasingly been outsourced to third-party asset owners and operators.

Residential for rent

Adequate housing is a factor that influences a city’s mobility of labour, social wellbeing and commerce levels.

Balance sheet strength for listed property

The unprecedented virus containment measures implemented by governments globally have led to widespread expectations of a forthcoming global recession.

Challenges and opportunities of COVID-19

Two of the most significant changes that will permeate the post COVID-19 world will relate to workplace flexibility and e-commerce

Responsible Investment

Our corporate RI 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 team

Stephen Hayes

Head of Global Property Securities

Tuan Pham

Senior Portfolio Manager Asia Pacific

Stuart Axelrod CFA

Senior Portfolio Manager Americas

Daniela Lungu

Senior Portfolio Manager UK and Europe

Want to know more?

Contact your Relationship Manager