Fermer

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

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Fermer

Specialists in equity portfolios in Asia Pacific, emerging markets, global and sustainable investment strategies

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Important Note Click to maximise

This is a financial promotion for The First Sentier Global Property Securities Strategy. This information is for professional clients only in the EEA and elsewhere where lawful. Investing involves certain risks including:

  • The value of investments and any income from them may go down as well as up and are not guaranteed. Investors may get back significantly less than the original amount invested.
  • Currency risk: Changes in exchange rates will affect the value of assets which are denominated in other currencies.
  • Single sector risk: Investing in a single sector may be riskier than investing in a number of different sectors. Investing in a larger number of sectors helps spread risk.
  • Single country / specific region risk: Investing in a single country or specific region may be riskier than investing in a number of different countries or regions. Investing in a larger number of countries or regions helps spread risk.
  • Charges to capital risk: The fees and expenses may be charged against the capital property. Deducting expenses from capital reduces the potential for capital growth.
  • Property securities risk: Investments are made in the shares of companies that are involved in property (like real estate investment trusts) rather than property itself. The value of these investments may fluctuate more than actual property.
  • Emerging market risk: Emerging markets may not provide the same level of investor protection as a developed market; they may involve a higher risk than investing in developed markets.

 

For details of the FCA authorised firms issuing this information and any funds referred to, please see Terms and Conditions and Important Information below

For a full description of the terms of investment and the risks please see the Prospectus and Key Investor Information Document for each Fund.

If you are in any doubt as to the suitability of our funds for your investment needs, please seek investment advice.

Global Property Securities - Quarterly Update - Q3 2020

Our overarching objective is to deliver real estate-based returns through the cycle while preserving client capital. We invest into high quality urban infill assets in high barrier to entry markets in the world’s most bustling cities through a highly diversified portfolio of listed REITs and property focused companies.

First Sentier Investors

Global Property Securities

– Global asset manager with $157b* of AUM, including $1.4b invested into property securities strategies.

– Investment team includes 7 portfolio managers and 3 analysts, located in New York, London and Sydney.

– Average industry experience of 20 years across the team.

*Assets under management is in USD terms as at 30 September 2020.

Foundational strengths

– Strong performance track record.

– Geographically diverse team of experienced industry experts.

– Rigorous investment process underpinned by bottom-up research and stock selection.

– Active consideration of ESG risks.

– Extensive ‘on the ground’ research.

Senior portfolio managers

Continuity of 7+ years

Major Strategy* Exposures

Source: First Sentier Investors as at 30 September 2020. *Refers to the First Sentier Global Property Securities Fund (OEIC).

Insight of the quarter

The threat that the ‘work from home’ (WFH) thematic poses for future office fundamentals has permeated markets since the onset of COVID-19, which may beg the question ... why does our strategy still have an 11% exposure to office buildings?

The sector is highly diverse and it’s important not to generalise.

Our largest exposure is to “A” grade suburban offices (6%), which are a likely beneficiary of decentralisation. We believe this trend could see tenants increasingly adopting ‘hub and spoke’ models by leasing high quality office buildings at lower occupancy costs closer to where workers live, in the suburbs and city fringes.

We also have exposure to medical offices and life science laboratories (2%). We believe these assets are very well placed given their essential nature, particularly amid heightened investment into healthcare systems.

The remainder is a small exposure to “A” grade Central Business District (CBD) high rise (2%) and low rise (1%) buildings, which will be affected to some degree by WFH headwinds.

However, current “A” grade suburban office valuations are compelling particularly as the polarisation between suburban and CBD based markets as decentralisation takes hold.

First Sentier Global Real Estate Strategy Performance (% in GBP, net of fees and expenses*)

These figures refer to the past. Past performance is not a reliable indicator of future results. For investors based in countries with currencies other than the share class currency, the return may increase or decrease as a result of currency fluctuations.

*to approximate a ‘net of fee’ return for the composite, we have applied an notional annual fee of 75 basis points, which is typically the highest fee we charge to institutional clients.. **All data is for the First Sentier Investors Global Listed Property (UCITS) Unhedged GBP composite. The composite’s benchmark is from inception the UBS Global Investors Index (TR), from 1/6/2013 the FTSE EPRA/ NAREIT Global Developed Net Index. Source: First Sentier Investors as at 30 September 2020.

Important Information

This document has been prepared for informational purposes only and is only intended to provide a summary of the subject matter covered and does not purport to be comprehensive. The views expressed are the views of the writer at the time of issue and may change over time. It does not constitute investment advice and/or a recommendation and should not be used as the basis of any investment decision. This document is not an offer document and does not constitute an offer or invitation or investment recommendation to distribute or purchase securities, shares, units or other interests or to enter into an investment agreement. No person should rely on the content and/or act on the basis of any material contained in this document.

This document is confidential and must not be copied, reproduced, circulated or transmitted, in whole or in part, and in any form or by any means without our prior written consent. The information contained within this document has been obtained from sources that we believe to be reliable and accurate at the time of issue but no representation or warranty, express or implied, is made as to the fairness, accuracy, or completeness of the information. We do not accept any liability whatsoever for any loss arising directly or indirectly from any use of this information.

References to “we” or “us” are references to First Sentier Investors.

In the UK, issued by First Sentier Investors (UK) Funds Limited which is authorised and regulated by the Financial Conduct Authority (registration number 143359). Registered office Finsbury Circus House, 15 Finsbury Circus, London, EC2M 7EB number 2294743. Outside the UK, issued by First Sentier Investors International IM Limited which is authorised and regulated in the UK by the Financial Conduct Authority (registered number 122512). Registered office: 23 St. Andrew Square, Edinburgh, EH2 1BB number SCO79063.

Certain funds referred to in this document are identified as sub-funds of First Sentier Investors ICVC, an open ended investment company registered in England and Wales (“OEIC”). Further information is contained in the Prospectus and Key Investor Information Documents of the OEIC which are available free of charge by writing to: Client Services, First Sentier Investors (UK) Funds Limited, Finsbury Circus House, Finsbury Circus, London, EC2M 7EB or by telephoning 0800 587 4141 between 9am and 5pm Monday to Friday or by visiting www.firstsentierinvestors.com. Telephone calls may be recorded. The distribution or purchase of shares in the funds, or entering into an investment agreement with First Sentier Investors may be restricted in certain jurisdictions.

Representative and Paying Agent in Switzerland: The representative and paying agent in Switzerland is BNP Paribas Securities Services, Paris, succursale de Zurich, Selnaustrasse 16, 8002 Zurich, Switzerland. Place where the relevant documentation may be obtained: The prospectus, key investor information documents (KIIDs), the instrument of incorporation as well as the annual and semi-annual reports may be obtained free of charge from the representative in Switzerland.

First Sentier Investors entities referred to in this document are part of First Sentier Investors a member of MUFG, a global financial group. First Sentier Investors includes a number of entities in different jurisdictions. MUFG and its subsidiaries do not guarantee the performance of any investment or entity referred to in this document or the repayment of capital. Any investments referred to are not deposits or other liabilities of MUFG or its subsidiaries, and are subject to investment risk including loss of income and capital invested.

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