Quay Global debuts real estate funds in new active ETF format

Quay Global Investors has become the latest fund manager to head down the active exchange traded fund (ETF) route, repackaging its two flagship global real estate funds into Australian Securities Exchange (ASX)-listed offerings.

The Quay Global Real Estate Fund (Unhedged) Active ETF (QGRU) and the Quay Global Real Estate Fund (AUD Hedged) Active ETF (QGFH) leverage the firm’s 12-year-strong track record in managing successful global real estate equity portfolios but with all the benefits of the ETF format.

Having to contend with the plethora of opportunities offered in the distinctly index-centric ETF market, the Bennelong Funds Management-owned Quay Global’s new active products are designed to deliver investors access to a “concentrated, high conviction” portfolio of real estate securities listed on a variety of global exchanges across a broader range of sectors including retail, office, residential, aged care, student housing, data centres and storage facilities.

“Quay are one of Bennelong’s strongest and fastest-growing investment partners. These two new active ETFs represent an important step in Bennelong’s strategy to enhance investor access to our leading investment solutions,” Gillian Larkin, chair of the Bennelong Funds Management Ltd Board, said.

“Share market natives have limited options to build a high conviction index unaware allocation to global property, so making Quay’s popular proposition available via the ASX was a logical step,” Bennelong Funds Management CEO, John Burke, said.

“Active ETFs are an increasingly popular investment vehicle, and we are seeing retail investors seeking more sophisticated ETF offerings, which replicate those managed by experienced investment teams such as Quay Global Investors.”

Holding between 20 and 40 securities, the ETFs seek to return the Australian Consumer Price Index (CPI) plus five per cent per annum measured over five years or more (net of fees) from leases, rent and other real estate related income.

“The team is proud to reach this milestone. As specialists in listed real estate securities globally we believe an active exposure to global listed property can be a valuable inclusion in a truly diversified portfolio,” Quay principal and portfolio manager, Justin Blaess, said.

“As investors we are observing deeply discounted valuations globally and consider them to be markedly disconnected from the sector’s robust fundamentals. As such, discounted valuations provide us with opportunity,” Quay principal and portfolio manager, Chris Bedingfield, said.