Andrew Parsons

Resolution Capital is pleased to announce that the Resolution Capital Real Assets Fund (ARSN 131 850 363) has transitioned to a global real assets strategy, effective 1 July 2026.

The Fund will be renamed the Resolution Capital Global Real Assets Fund and will invest across the full global listed real assets opportunity set (Global Listed Real Estate & Global Listed Infrastructure), rather than a portfolio constrained largely to Australia.

The move follows three decades of evolution in the strategy, each step taken ahead of structural shifts in the market.

“The Australian listed infrastructure universe has shrunk to a handful of names since Sydney Airport, AusNet and Spark Infrastructure were taken private. At the same time, Goodman Group now makes up around 40% of the A-REIT index, up from 17% in 2019. This level of concentration has become a real risk-management constraint,” said Resolution Capital Chief Investment Officer, Andrew Parsons.

“By transitioning to a global real assets investment strategy, we can now formalise a shift the portfolio has been making for years and offer investors exposure to global real assets such as data centres, regulated utilities, midstream energy, telecom towers, rental housing and healthcare real estate – sectors the Australian market simply doesn’t offer at scale.”

The Resolution Capital team first invested in Australian listed property in 1995, added selective global exposure in 2005, launched the Resolution Capital Core Plus Property Securities Fund in 2008 which opened the strategy to retail investors, and in 2019 transitioned from the Core Plus fund to the Resolution Capital Real Assets Fund which broadened the mandate to include Australian Listed Infrastructure (up to 50%), and Global Listed Infrastructure (GLI) within the offshore allocation (up to 20%).

Resolution Capital’s Real Assets strategy has been the top-performing strategy in the eVestment database in the Australian Real Estate category since October 2019, with approximately one-third of that outperformance attributable to the infrastructure allocation, both domestic and offshore.

The Resolution Capital Global Real Assets Fund will gain its global exposure through investment into the Resolution Capital Global Property Securities Fund (Managed Fund) (approximately 40%) and the Resolution Capital Global Listed Infrastructure Fund (approximately 60%), both run by specialist teams within Resolution Capital.

The benchmark will move from the S&P/ASX 300 A-REIT Accumulation Index to a blend of 60% FTSE Developed Core Infrastructure 50/50 (AUD Hedged) Net Index and 40% FTSE EPRA/NAREIT Developed Index (AUD Hedged) Net TRI, reflecting the market capitalisation split between the two asset classes and the historically stronger risk-adjusted returns of listed infrastructure.

The investment team, philosophy and research process are unchanged. The portfolio continues to be managed by the same professionals who have run the strategy through its prior evolutions, applying the same bottom-up, asset-backed approach.

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Andrew Parsons

Resolution Capital, a specialist global listed real assets investment manager, is pleased to announce the impending listing of an Exchange Traded Managed Fund (ETMF), also known as an active-ETF, on the Australian Securities Exchange (ASX).

Trading under the ticker ‘RCAP’, the Resolution Capital Global Property Securities Fund ETF provides access to the highly rated flagship unit trust, the Resolution Capital Global Property Securities Fund (“the Fund”). Since its inception in September 2008, the Fund has generated a net return of 10.3% p.a. to 31 December 2021.

Upon listing, RCAP represents the only actively managed portfolio of Global Listed Property Securities (also known as GREITs) available on the ASX.

Resolution Capital’s Chief Investment Officer, Andrew Parsons, outlined why the firm has moved to provide access to its successful global strategy via an active-ETF.

“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.

“The ETMF structure provides a convenient and accessible way for a broad set of investors, including mums and dads and other individuals, to gain exposure to a select portfolio of some of the world’s best real estate platforms with the ease of being able to buy and sell units on the ASX.

“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.”

Mr Parsons said particularly in the current market environment, an actively managed portfolio of GREITs can play a vital role in diversified investment portfolios.

“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.

“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 means 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.”

The Resolution Capital Global Property Securities Fund (Managed Fund) aims to achieve an annual total return that exceeds the total return of the Benchmark (FTSE EPRA/NAREIT Developed Index (AUD Hedged) Net TRI) after fees on a rolling 3-year basis.

RCAP will list on the ASX on Tuesday 22 February, 2022.

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