Principal Global REITs wins mandates and is upgraded by Zenith to ‘Highly Recommended’ rating

Grant Forster

Grant Forster

Principal Global Investors Australia (Principal) has announced their Global Real Estate Securities strategy has recently been awarded a number of mandates including BT New Zealand and the Australian Construction Industry Redundancy Trust (ACIRT).

In further endorsement of Principal’s strength as a global real estate manager, the Principal Global REIT Fund (the fund) has also received a Zenith ‘Highly Recommended’ rating.

Grant Forster, CEO for Principal in Australia, said: “We are delighted to announce that BT New Zealand and ACIRT are joining us as clients. Their decisions show welcome recognition of the expertise of Principal Global Investors in managing real estate securities.”

Michael Gaffney, Director Institutional Sales, said: “The Principal Global Real Estate strategy continues to gain favour with our clients. Our competitive advantage is gained through the strength of our portfolio construction, coupled with the depth and quality of the Principal Global Investors real estate team.”

BT Funds Management (NZ) Limited is the investment arm of Westpac in New Zealand. The firm manages over US$10bn in assets under management, predominantly comprising multi-asset portfolios under a best in class outsourced methodology.

Commenting on BT’s decision to award the mandate to Principal, BT New Zealand Head of Investment Solutions Matthew Goldsack said: “Following a global search, we chose to partner with Principal for its core investment approach and longterm track record of adding value. The quality of its people and portfolio construction principals sets it apart from other managers. The Principal Global REIT Fund is an important component of BTNZ’s diversified fund strategy, and the appointment of Principal has allowed us to broaden our approach to the management of listed real estate assets, which adds real value to our products, for our customers, over time.”

In addition to the new mandates, Principal also announced that the Global REIT Fund had been awarded Zenith’s highest rating of ‘Highly Recommended’. The Zenith report notes that the the fund has performed well over time, achieving an outperformance ratio of greater than 50%, in all market conditions, over a range of time periods. The report also highlights that the fund has outperformed the Zenith assigned benchmark and median manager over all periods, placing it in the first and second quartile of assessed managers over all time periods.

Mr Forster said, “The fund was created for investors looking for reliable income and capital growth potential. Principal’s globally integrated approach has contributed to the fund’s strong peer relative performance in recent years, supporting Zenith’s increased conviction, leading to the award of the highest ranking. This is a verification of the quality of our real global estate investment team as well as the investment philosophy of the fund.”

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