Our Head of Global Property Securities, Stephen Hayes explains the benefits of investing in property securities and discusses property performance in a rising interest rate environment.
Our Head of Global Property Securities, Stephen Hayes, introduces the strategy and tells us more on how the strategy is predominantly invested in residential assets and logistics assets. Both of those two asset types make up over 50% of the portfolio.
Watch our Head of Global Property Securities, Stephen Hayes, discuss the key characteristics of the strategy, characterised by investments in high quality real estate within the world’s most bustling cities. Find out more about the potential benefits of investing in property securities and how the strategy is predominantly invested in the following video:
Our Head of Global Property Securities, Stephen Hayes discusses how the team are positioning the portfolio post-COVID
Consider listing property as part of real asset portfolios for long-term returns, liquidity, and inflationary hedge. This article explores these factors and emphasizes the investment potential of listed property as a complement to real asset portfolios.
The outlook for the global economy and financial markets looks more uncertain today than it has for a long time. Both interest rates and inflation have risen sharply. There is a growing consensus that much of the world will shortly be experiencing slowing economic growth. Understandably, investors are asking what their options are. With a wide array of asset classes available, which are best placed to offer investors resilience in the current environment, but also sustainable investment opportunities?
Investing with regard to environmental, social and governance considerations is not new to us. Our Head of Global Property Securities explains how these factors directly influence stock selection and portfolio construction.
As more carbon emission regulation comes in globally – as we expect it will – Real Estate Investment Trusts (REITs) with emission reduction plans are likely to be better-placed than their peers as the cost of carbon increases.
Now that more than 18 months have passed since COVID-19 started sweeping the world, we have a good understanding of how the pandemic has affected real estate investments. In some ways, it has changed the game. In other ways, it has simply underlined a number of trends that were already shaping the sector.
In order to fully understand why Kaisa defaulted on its bonds, we first need to get a good grasp on the deleveraging policy called the three red lines. Following years of debt-fueled growth in the property sector during which home prices surged six-fold over the past 15 years, the Chinese government decided to rein in excessive credit took on by property developers to avoid Japan’s mistake in the 1990s, which eventually led to long-term damage to growth.
Credit portfolios with genuine Environmental Social and Governance (ESG) integration could be a canary in the coal mine for potentially difficult-to-quantify risks and opportunities, including those likely to stem from climate change and the energy transition. While governments globally move at different speeds to put in place net zero policies, ESG-focused credit investors are taking decisive, early action to reflect these factors in their portfolio allocations.
Tap into a relatively stable investments in real assets, infrastructure, property and essential services we all rely upon
Achieving net-neutral carbon development within the listed real estate sector requires comprehensive measurement of embodied carbon emissions, the implementation of embodied carbon reduction targets within development programmes and carbon offsets.
Stabilising the climate will require strong, rapid, and sustained reductions in greenhouse gas emissions, and reaching net zero CO2 emissions.
Once again, 2021 was a year full of surprises and challenges, with ongoing Covid disruptions and China turning from a global outperformer to underperformer. The Chinese government’s policy crackdowns, especially in the internet, education and property sectors, were sudden and dramatic.
There were a number of structural trends leading up to the Covid pandemic that were all very well understood. And the pandemic has given rise to some newer emerging trends. And what is central to the majority of these trends is the rapid advancement and continued adoption of technology which is driving societal change.
Mises à jour régulières des nouvelles, documents de recherche, mises à jour de la stratégie d'investissement et réflexions de certains des principaux experts en investissement de First Sentier Investors.
We consider ESG risks to be factors that may place business value at risk. Companies at risk are identified using both external providers and our own internally driven research, which is based on a systematic and extensive company meeting program.
We believe real estate securities will be supported by a global economic recovery in 2021, underpinned by highly accommodative governments and central banks and the gradual normalisation of commercial and social activity as the world is progressively inoculated against COVID-19.
Investing in property securities provides investors with an opportunity to exploit trends in various property sectors through the listed property trust market, without the significant transaction costs that typically apply when investing in direct property.
East Cermak has over 1.1 million square foot of gross lettable area and draws on over 100 megawatts of power from three separate grids. To put its power output in perspective, it’s the equivalent of the amount of power used by 100,000 households.
Check the latest First Sentier Investors fund price and fund performance, keep track of funds performance and trends to help investment selections.
What are your thoughts on the increasing regulation risk of investing in China? Firstly, regulations are nothing new — it has always been a part of the investment equation. If we look at Hong Kong or Singapore for example, the government would introduce new regulations on the property market from time to time; and in China, the government has introduced a number of new regulations for banks and insurance companies over the years.
Demand has remained strong across airports and toll roads globally. This strong demand seems somewhat counter-intuitive to the uncertain economic outlook and significant cost of living pressures throughout the world.
We consider ESG risks to be factors that may place business value at risk. Companies at risk are identified using both external providers and our own internally driven research, which is based on a systematic and extensive company meeting program.
Nous pensons que la société dans son ensemble doit réduire considérablement ses émissions de gaz à effet de serre. C’est le seul moyen d’éviter les pires conséquences de la crise climatique.
As we return to the skies for that first face-to-face meeting, reuniting with family or taking that well-deserved holiday, the airports we pass through will be markedly different to what we knew before.
Global listed infrastructure companies outperformed both global equities and bonds in 2022. We believe the financial and economic factors contributing to this outperformance may remain in play in 2023.
In September 2023, I met more than 30 global listed infrastructure companies and stakeholders from the UK, Europe and China. The following travel diary summarises my impressions and findings from these meetings.
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