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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 monthly update

  • Insights
  • Global Property Securities update May 2021

Global Property Securities monthly update May 2021

The disruption to the restaurant sector and the growth of online prepared food delivery and ghost kitchens are examples that can affect the real estate sector.

Insight of the Month

Societies continued adoption of technology and growth in the take up of the internet are leading to rapid societal change. The disruption to the restaurant sector and the growth of online prepared food delivery and ghost kitchens are examples that can affect the real estate sector. Whilst retailing is being disrupted, urban infill industrial property is a large beneficiary as ghost kitchen demand drives up market rents and land values. As the institutionalisation of the ghost kitchen industry continues to grow we are also expecting the size and scalability of the assets to also continue to grow.1

Asia in particular are leading the way. New ghost kitchens are being built at an increasing rate where the adoption rates of online delivery and ordering technology have shown to be superior. For example Yum China2, China’s franchisor of KFC and Pizza Hut have 300 million people signed up to their online rewards program which serves as a foundation for them to grow their national delivery network (Yum China, 2021). Their long term vision is to have 20,000 ghost kitchens located in mainland China, with 1,000 kitchens in the works for 2021. The FSI Global Property Securities strategies’ Asian logistics investments currently have a number of ghost kitchens under development in China and Indonesia.

 

Global Property Securities Strategy

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.

About us

  • Global asset manager with $183b* of AUM, including $1.7b invested into property securities strategies.
  • Investment team of 10 portfolio managers and analysts located in New York, London and Sydney.
  • Average industry experience of 21 years across the team.

* Assets under management in USD terms as at 31 May 2021.

Foundational strengths

  • Strong performance track record over last 14+ years.
  • 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 8+ years)

Major strategy* exposures

Source: First Sentier Investors as at 31 May 2021. * Refers to the First Sentier Global Property Securities Fund (OEIC). The fund is not available for investment by US persons.

1 Certain statements, estimates, and projections in this document may be forward-looking statements. These forward-looking statements are based upon First Sentier Investors’ current assumptions and beliefs, in light of currently available information, but involve known and unknown risks and uncertainties. Actual actions or results may differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements. There is no certainty that current conditions will last, and First Sentier Investors undertakes no obligation to correct, revise or update information herein, whether as a result of new information, future events or otherwise.

2 For illustrative purposes only. Reference to the names of each company mentioned in this communication is merely for explaining the investment strategy and should not be construed as investment advice or investment recommendation of those companies. Companies mentioned herein may or may not form part of the holdings of First Sentier Investors.

First Sentier Global Real Estate Strategy performance
(% p.a. in USD, gross of fees and expenses)

Source: First Sentier Investors as at 31 May 2021. First Sentier Global Property Securities Composite compared to FTSE EPRA NAREIT Developed Index. All data in USD terms. Inception date is 1 October 2006. Benchmark since inception to May 20 2013: UBS Global Real Estate Investors. From 1 June 2013: FTSE EPRA/NAREIT Developed Index. The funds within the composite are not available for investment by US persons. Composite information is being provided as an example of First Sentier Investors’ expertise in the strategy. Periods greater than 1 year are annualized returns. Past performance is not indicative of future performance. Performance figures do not reflect the deduction of investment advisory fees. A client’s return will be reduced by the investment fees. If a client placed $100,000 under management and a hypothetical gross return of 10 were achieved, the investment assets before fees would have grown to $259,374 in 10 years. However, if an advisory fee of 1% were charged, investment assets would have grown to $234,573, or an annual compounded rate of 8.9%.

Important Information

This material is solely for the attention of institutional, professional, qualified or sophisticated investors and distributors who qualify as qualified purchasers under the Investment Company Act of 1940 and as accredited investors under Rule 501 of SEC Regulation D under the US Securities Act of 1933 (“1933 Act”). It is not to be distributed to the general public, private customers or retail investors in any jurisdiction whatsoever.

This presentation is issued by First Sentier Investors (US) LLC (“FSI” or “First Sentier Investors”), a member of Mitsubishi UFJ Financial Group, Inc. (”MUFG”), a global financial group. The information included within this presentation is furnished on a confidential basis and should not be copied, reproduced or redistributed without the prior written consent of FSI or any of its affiliates.

This document is not an offer for sale of funds to US persons (as such term is used in Regulation S promulgated under the 1933 Act). Fund-specific information has been provided to illustrate First Sentier Investors’ expertise in the strategy. Differences between fund-specific constraints or fees and those of a similarly managed mandate would affect performance results. This material is provided for information purposes only and does not constitute a recommendation, a solicitation, an offer, an advice or an invitation to purchase or sell any fund and should in no case be interpreted as such.

Any investment with First Sentier Investors should form part of a diversified portfolio and be considered a long term investment. Prospective investors should be aware that returns over the short term may not be indicative of potential long term returns. Investors should always seek independent financial advice before making any investment decision. The value of an investment and any income from it may go down as well as up. An investor may not get back the amount invested and past performance information is not a guide to future performance, which is not guaranteed.

Certain statements, estimates, and projections in this document may be forward-looking statements. These forward-looking statements are based upon First Sentier Investors’ current assumptions and beliefs, in light of currently available information, but involve known and unknown risks and uncertainties. Actual actions or results may differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements. There is no certainty that current conditions will last, and First Sentier Investors undertakes no obligation to correct, revise or update information herein, whether as a result of new information, future events or otherwise.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE PERFORMANCE.

Reference to the names of each company mentioned in this communication is merely for explaining the investment strategy, and should not be construed as investment advice or investment recommendation of those companies. Companies mentioned herein may or may not form part of the holdings of FSI. The comparative benchmarks or indices referred to herein are for illustrative and comparison purposes only, may not be available for direct investment, are unmanaged, assume reinvestment of income, and have limitations when used for comparison or other purposes because they may have volatility, credit, or other material characteristics (such as number and types of securities) that are different from the funds managed by First Sentier Investors.

Apart from First Sentier Investors, neither the MUFG nor any of its subsidiaries are responsible for any statement or information contained in this document. Neither MUFG nor any of its subsidiaries guarantee the performance of any fund or the repayment of capital by any fund. Investments in a fund are not deposits or other liabilities of MUFG or its subsidiaries, and the fund is subject to investment risk, including loss of income and capital invested. 

For more information please visit www.firstsentierinvestors.com. Telephone calls with FSI may be recorded.

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