Resolution Capital launches active-ETF on ASX

Global listed real estate assets investment manager, Resolution Capital, announced it has listed the only global real estate investment trust (GREIT) exchange traded managed fund (ETMF) available on the Australian Securities Exchange (ASX).

The Resolution Capital Global Property Securities Fund ETF (RCAP) offers investors access to the flagship unit trust, the Resolution Capital Global Property Securities Fund.

Since its inception in 2008, the flagship fund has returned a net 10.3 per cent per year as of 31 December 2021.

Andrew Parsons, Chief Investment Officer at Resolution Capital, said the new ETMF structure assists a wide range of individuals to gain access and exposure to a portfolio of global real estate platforms, along with the ease of trading units on the ASX.

“Members of our team have been investing in REITs for over 25 years and in Global REITs for over 15 years, and we are proud to have delivered strong and consistent through-cycle returns for our clients,” he said.

“Under the wrapper of RCAP and through the Fund’s investments in select listed Global REITs, we provide underlying exposure to what we believe to be some of the world’s best institutional grade real estate assets, which most individuals would not be able to access directly.

“The underlying properties are predominantly located in major cities and include a diverse range of property sectors such as logistics, data centres, life science research and medical facilities, as well as apartment buildings.”

Parsons also said an actively managed portfolio of GREITs can help investors to diversify their portfolios amid the current market environment.

“As we experience the onset of rising consumer costs, we believe select global REITs have the potential to serve as an effective hedge against inflation,” he said.

“We focus on real estate platforms with strong balance sheets and capable of demonstrating rental pricing power through superior locations and with buildings most relevant to the needs of the economy.

“Furthermore, the inflationary pressures mean developers of new buildings face the prospect of higher costs. This gives existing property owners significant cost advantages; it moderates the supply picture and underpins asset values.”

RCAP listed on the ASX on 22 February 2022.