The Nedgroup Investments Global Property Fund has celebrated its three-year anniversary as one of the top-performing global property funds locally and internationally.
The Nedgroup Investments Global Property Feeder Fund, domiciled in South Africa, is ranked as the best performing fund in the ASISA Global RE General sector, providing an annualised return of 7.5% outstripping the category average return of 5.0%*.
In addition, the Nedgroup Investments Global Property Fund, domiciled in Dublin, ranks in the 21st percentile of the Morningstar EAA Property Indirect Global category, having produced a return of 5.8% versus 3.8% for the peer group average**.
Rob Johnson, Head of Investments at Nedgroup Investments, says the three-year mark is an important minimum period for evaluation of any fund as it provides investors with the confidence that the application of a robust process is translating into a successful track record.
“This is an especially important milestone for us given the excellent performance of the fund and the unique access to global property and diversification benefits it provides investors. Managed by Resolution Capital, arguably the best global REIT manager in the world, the fund can benefit from the manager’s experience and impressive 10-year track record,” he says.
Many investors tend to overlook REITs as an investment option to complement their existing Global investments. However, Johnson says global REITs are a powerful tool as part of a diversified investment strategy for investors looking for stable returns over the long term.
Why invest in global REITs?
- Own the best real estate in the world: Investing in a global REIT portfolio gives investors liquid access to some of the best properties around the world, without having to own the entire asset. This kind of access to real estate is unique.
- Diversified exposure across assets, sectors and regions: Investment into the Nedgroup Investments Global Property fund means investors can not only diversify away from single-property exposure and the risks that come with that, but they can also invest in a range of different kinds of properties that they would not otherwise have access to – like urban logistics properties, telecommunications towers and self-storage. The investment is also diversified geographically to ensure that no exposure to one region is too high.
- Fungibility and liquidity: Under the stewardship of high quality management, underlying properties within a REIT structure can be sold as appropriate, without any pressure or time constraints. Furthermore, the Nedgroup fund invests in a way which enables them to purchase or dispose of high quality real estate in a quick and simple manner – creating attractive liquidity for an investor.
Why Resolution Capital?
Resolution Capital is a specialist investment manager based in Sydney, with primary expertise in managing global listed real estate mandates. Johnson says their disciplined investment process emphasises a global perspective and focuses on long term wealth preservation and appreciation.
“Resolution Capital is an owner managed business with a strong culture of stewardship - characteristics that we believe are important in ensuring alignment of interests with our clients. They have an outstanding long-term track record with an emphasis on superior capital protection in down-markets – another attribute that we tend to favour in our manager selection process,” says Johnson.
“We look forward to continuing to offer this fund to investors as part of the celebration of this anniversary and we value the opportunity to engage with existing and potential investors looking to own a piece of the best real estate in the world,” says Johnson.
*Since inception July 11th 2016 to 31st August 2019, total return calculated in ZAR, net of expenses.
**Since inception July 14th 2016 to 31st August 2019, A Class total return calculated in USD, net of expenses.