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

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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.

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Global property securities

Global property securities

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Strategy Overview

Key Facts

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SUT represents Singapore Unit Trust fund range

With effect from 22 September 2020, First State Investments was rebranded to First Sentier Investors. The names of the funds were also rebranded, please view the full list of the fund name changes: First Sentier Investors Global Growth Funds (Singapore Unit Trust / Authorized Scheme) / First Sentier Investors Global Umbrella Fund (IRISH VCC / Recognized Scheme).

Fund performance data is sourced from First Sentier Investors. Single pricing basis with net income reinvested. The above performance data is provided for information only and does not contain or constitute investment advice. A copy of the Prospectus is available and may be obtained from the Manager, First Sentier Investors (Singapore), or any of our distributors. Investors should read the Prospectus and consult a financial adviser before deciding to make any investment. In the event of discrepancies between the marketing materials and the Prospectus, the Prospectus shall prevail. The value of the Fund and the income from them, if any, may fall or rise. Past performance of the Fund or the Manager and any economic and market trends or forecast, is not indicative of the future or likely performance of the Fund or the Manager. Neither the Manager, nor any of its associates, nor any director, or employee accepts any liability for any loss arising directly or indirectly from any use of this information. Units are not available to U.S. persons.

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, Sustainability 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

9,467
tonnes

Operational CO2 p.a

7,213
tonnes

Development
Embodied Carbon

2,164
tonnes

Operational
Carbon Intensity

2022
121 kg
C02 sqm
2027
92 kg
C02 sqm

Solar Energy
Generation

2,252mw
“Equivalent to powering 1 million homes”

Solar Generation
to Energy

2027
9.5%
2022
5.3%

Cogeneration Energy

20%
of portfolio
energy use is cogeneration

Energy Sourced from Renewables

2027
53%
2022
46%

Development Embodied Carbon Offset

183
tonnes

Employee Diversity

100%
of portfolio
has employee
diversity plan
in place

Waste Management

100%
of portfolio has
defined waste management
program

Charity

100%
of portfolio has a
charity or foundation
plan in place

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 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.

*  Source: Government data as at March, 2020.

U.S. Household Formation vs Total Housing Completions 

Source: US Census Bureau

Disclaimer: Reference to specific securities (if any) is included for the purpose of illustration only and should not be construed as a recommendation to buy or sell the same. All securities mentioned herein may or may not form part of the holdings of First Sentier Investors’ portfolios at a certain point in time, and the holdings may change over time.

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