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Specialist in Asia Pacific, 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, Social 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. 

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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

    Current Estimated Portfolio Net Zero Date 2039 *

Net Zero

Embodied CO2 p.a

300
tonnes

Operational CO2 p.a

194
tonnes

Development
Embodied Carbon

104
tonnes

Operational
Carbon Intensity *

2024
49 kg
C02 sqm
2029
24 kg
C02 sqm

Energy Intensity *

2024
1471 MJ
per sqm
2029
1398 MJ
per sqm

Solar Generation
to Energy *

2029
8.4%
2024
4.3%

Energy sourced from
Renewables *

2029
62%
2024
53%

Percentage Controlled Energy

36%

Cogeneration Energy

18.2%

Community charity foundation in place

73%
have a community
charity foundation

Board independence

74%
of independent
directors

Board diversity

29%
of directors
are female

The measurements set out in this infographic are based on both reported and estimated data sourced by third parties or by the relevant First Sentier Investors (FSI) investment team and are current as at 30 June 2024. Where estimated data has been used FSI has taken reasonable care to ensure that these measurements are accurate proxies it notes that they are estimates based on information and representations made by portfolio companies, which may ultimately prove to be inaccurate. No assurance is given or liability accepted regarding the accuracy, validity or completeness of these measurements and no reliance should be placed upon these measurements in any decision making.

*All forecasts are derived from FSI’s proprietary carbon analysis. These forecasts are based on information and representations made to the relevant investment teams by portfolio companies (which may ultimately prove not be accurate), together with assumptions made by the relevant investment team in relation to future matters such as government policy implementation in ESG and other climate-related areas, enhanced future technology and the actions of portfolio companies (all of which are subject to change over time). As such, achievement of these forecasts depend on the ongoing accuracy of such information and representations as well as the realisation of such future matters. Any commitments and targets set out in this material are continuously reviewed by the relevant investment teams and subject to change without notice.

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 these property assets

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Central business district and suburban office buildings

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Super-regional / regional / sub-regional and convenience shopping centres

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Logistical warehousing

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Hotels

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Healthcare

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Self-storage

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Data centres

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Retirement assets

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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 real estate 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

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 responsible investment 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 investment team

Stephen Hayes

Head of Global Property Securities

Andrew Schaffer

Senior Portfolio Manager

Dennis Maloney

Senior Portfolio Manager

Daniela Lungu

Senior Portfolio Manager

Any targets (including, but not limited to, the net zero targets) on this webpage are based on (i) available information and representations made to First Sentier Investors by third parties, including, but not limited to, portfolio companies; and (ii) assumptions made in relation to future matters such as the implementation of government policy in climate-related areas, enhanced future technology and the actions of portfolio companies. Such information and representations may ultimately prove to be inaccurate and such future matters may not ultimately be realised. As such, First Sentier Investors cannot guarantee the achievement of these targets. These targets are subject to ongoing review and may change without notice.

Any ESG related commitments, are current as at the date of publication and have been formulated by the relevant investment team in accordance with either internally developed proprietary frameworks or are otherwise based on the Institutional Investors Group on Climate Change (IIGCC) Paris Aligned Investment Initiative framework. The commitments are based on information and representations made to the relevant investment teams by portfolio companies (which may ultimately prove not be accurate), together with assumptions made by the relevant investment team in relation to future matters such as government policy implementation in ESG and other climate-related areas, enhanced future technology and the actions of portfolio companies (all of which are subject to change over time). As such, achievement of these commitments depend on the ongoing accuracy of such information and representations as well as the realisation of such future matters. Any ESG related commitments are continuously reviewed by the relevant investment teams and subject to change without notice.

To the extent this material contains any measurements or data related to ESG factors, these measurements or data are estimates based on information sourced by the relevant investment team from third parties including portfolio companies and such information may ultimately prove to be inaccurate.