| Report Date | |
| Manager | |
| Fund Name | |
| Strategy | |
| Latest Return Date | |
| Latest Return | |
| Latest 6 Months | |
| Latest 12 Months | |
| Latest 24 Months | |
| Annualised Since Inception | |
| Inception Date | |
| FUM (millions) | |
| Fund Overview | The Fund will invest in a number of global listed real estate companies, groups or funds. The investment strategy is to make investments in real estate securities at a price that will deliver a real, after inflation, total return of 5% per annum (before costs and fees), inclusive of distributions over a longer-term period. The Investment Strategy is indifferent to the constraints of any index benchmarks and is relatively concentrated in its number of investments. The Fund is expected to own between 20 and 40 securities, and from time to time up to 20% of the portfolio maybe invested in cash. The Fund is $A un-hedged. |
| Manager Comments | Quay noted almost all of the Fund's investees reported earnings in line with or better than their expectations in October, with many lifting full year guidance. They believe improving earnings outlook (especially in the USA) is the flip-side to higher interest rates; i.e. if higher interest rates are the result of a strong economy then that strength will be felt in rental growth and earnings. This, Quay noted, is particularly evident in the Fund's multifamily exposure, which in simple terms is apartments to rent. Quay also mentioned that the US reported new homes sales fell -5.5% to a new two-year low, which they believe the market's reaction suggests investors could be equating soft new home sales with another financial crises event. Quay believe, on this occasion, weak new home sales don't suggest a poor economy but instead an affordability issue. They noted housing affordability around the world has been one of their key themes, pointing to high levels of students debt, rising construction costs, weak wage growth and a 200bp increase in mortgage rates in the US keeping more young Americans from home ownership and living at home with their parents for longer. Quay added that new homes in the US are still needed and total new housing supply remains relatively low by historic standards. Consequently, the Fund's US residential investees continue to report very robust leasing demand and 'better-than-inflation' rental growth. By contrast with the residential environment in Australia today where supply of new dwellings is at a record high and banks continue to tighten lending standards, Quay believe the relative income stability of off-shore residential property to be a better alternative. |
| More Information |
