Andrew Parsons

Resolution Capital is marking the three-year anniversary of the launch of its Global Listed Infrastructure Fund. The Fund invests in a select portfolio  of high-quality listed infrastructure assets that provide stable cashflows which have natural inflation linkages that can help provide defensive positions in client portfolios.

According to Resolution Capital’s Chief Investment Officer, Andrew Parsons, Global Listed Infrastructure is well positioned to benefit from very strong secular changes in 2025 and beyond.

“The world ultimately needs more power to fuel major structural shifts in digitisation, and that needs to be delivered in renewable formats that are sustainable, and which are less harmful to environments and populations globally,” said Mr Parsons.

“GLI is an underappreciated asset class in terms of being able to provide real and tangible exposure to digitisation. We have been building select positions in electric utilities globally that are essential in facilitating the energy demands of digitisation and the growth of artificial intelligence.

“Mobility is another major theme in which we think GLI provides unparallel exposure. Population growth and urbanisation is seeing demand for new and improved infrastructure and the listed market provides the most liquid way for investors to access these opportunities.”

During its first three years since inception, the Resolution Capital Global Listed Infrastructure Fund has navigated a challenging market environment and delivered a strong return profile and lower volatility for clients. It has achieved an annualised return of 7.5% post fees since inception (30/09/2021).

Resolution Capital Managing Director, Sonia Luton said, “We are very excited to deliver this specialist investment offering in global listed infrastructure to clients.

“The role of real assets in portfolios is increasingly important – we anticipate the overlap between listed infrastructure and real estate to become greater over time. Our Global Listed Infrastructure strategy has many of the hallmarks of the successful investment philosophy that Resolution Capital has adopted in listed real estate for over 20 years. “

The Resolution Capital Global Listed Infrastructure Fund follows Resolution Capital’s unique multi portfolio manager approach and is managed by three experienced portfolio managers, Jan de Vos, Sarah Lau and Mark Jones. The Fund has a ‘Recommended’ rating from Lonsec Research.

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Portfolio Manager, Jan de Vos said he believes the rating is strong recognition for the role an actively-managed portfolio of Real Assets can play in investment portfolios and the quality of the Resolution Capital investment process.

“We are proud to achieve a highly recommended rating from the respected team at Lonsec in just over two years since we launched this Fund. It is a testament to our team and our disciplined investment process which emphasises high quality predictable cash flows, strong capital structures and experienced management teams,” he said.

“The Resolution Capital Real Assets Fund provides quality exposure across a diverse range of listed real estate and infrastructure and sub-sectors. We believe this combination provides an exceptional way for investors to gain exposure to key trends including the growth in needs based real estate such as childcare centres and self-storage and the return to mobility with increased traffic at airports and toll roads as economies start to re-open.

“Our concentrated portfolio contains listed assets that derive revenue from physical assets which over time can generate sustainable, long-dated, inflation-protected cash flows.

In its report, Lonsec notes Resolution Capital’s “well-formulated and consistent investment process”.

The Resolution Capital Real Assets Fund was launched in October 2019, after unitholders of the Resolution Capital Core Plus Securities Fund approved a strategy change to allow up to 50% of the existing A-REIT portfolio to be invested in Australian Listed Infrastructure (ALI) securities and up to 20% in Global listed real estate securities and Global Listed Infrastructure.

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In its review, Lonsec notes the “strong performance” of the Fund since transitioning to a Real Assets mandate.

Furthermore, “Lonsec has high regard for the Resolution Capital investment team’s skills and capabilities in property securities, which has been combined with the hiring of two experienced infrastructure analysts.”

Portfolio Manager, Jan de Vos, said the rating reflects the benefits of a Real Assets portfolio, consisting of both Listed Infrastructure and Real Estate securities.

“By combining A-REITs, Australian Listed Infrastructure and a select allocation to Global Real Estate and Infrastructure securities, we are providing clients with exposure to a diverse range of underlying hard assets with attractive attributes, including inflation protected cashflows.

“In my view, a portfolio of Listed Real Assets remains a great opportunity to gain exposure to key segments of the economy benefiting from broad based growth and secular demand trends in Australia and globally, which will continue to accelerate as economies normalise following COVID-19 lockdowns.”

The Fund was launched in October 2019, after unitholders of the Resolution Capital Core Plus Property Securities Fund approved a strategy change to allow up to 50% of the existing A-REIT portfolio to be invested in Australian Listed Infrastructure (ALI) securities and the Global component to include both Global Listed Real Estate and Global Listed Infrastructure.

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Portfolio Manager, Jan de Vos, said the rating reflects a strong appraisal for the role that a carefully selected portfolio of quality REITs and Listed Infrastructure can play in investors’ portfolios.

“In my view Real Assets remain a compelling long-term investment opportunity and the Resolution Capital Real Assets Fund provides quality exposures across a diverse range of REITs and Listed Infrastructure,” said Mr De Vos.

“Infrastructure and real estate have similar characteristics as both derive revenue from physical assets which, over time, can generate sustainable, long-dated, inflation-protected cash flows and provide exposure to population growth and urbanisation.

“When selecting Real Assets our rigorous process emphasises predictable cash flows, strong capital structures and experienced management teams. This process has proven particularly important recently when certain Real Assets have been a bedrock of stability amongst the extreme volatility.”

In its report, Zenith notes that the ability for the Real Assets investment team to supplement research from Resolution Capital’s highly regarded global team is a “key attraction and potential advantage” for the fund.

Furthermore, “Zenith has a favourable view of the expanded mandate, which allows for greater flexibility by increasing the investable universe to include Infrastructure securities.”

The Resolution Capital Real Assets Fund was launched in October 2019, after unitholders of the Resolution Capital Core Plus Securities Fund approved a strategy change to allow up to 50% of the existing A-REIT portfolio to be invested in Australian Listed Infrastructure (ALI) securities and up to 20% in Global listed real estate securities and Global Listed Infrastructure.

The fund’s investment objective is to exceed the total return of the S&P/ASX 300 A-REIT Accumulation Index after fees on a rolling 3-year basis.

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