Alison Telfer

UBS Asset Management (UBS) has partnered with CBRE Investment Management, Listed Real Assets LLC, part of CBRE Investment Management (CBRE) to launch a Concentrated Global Property Model on the Praemium SMA. The model is the first SMA portfolio to provide investors with an actively managed portfolio of global listed property securities in the Australian market, with seed capital from private wealth firm, Emanuel Whybourne & Loehr (EWL).

The strategy uses CBRE’s proprietary multi-step investment process to identify 25-45 compelling global property securities across a range of geographic and economic sectors.

Country Head of UBS Asset Management for Australia & New Zealand, Alison Telfer said, “To launch this Global Property SMA is a logical next step for us given our long-standing partnership with the CBRE investment team through our four existing funds, and UBS’ expertise in Managed Accounts globally.

“Additionally, this launch comes at an opportune time. Whilst REITs, like most asset classes, have experienced volatility throughout 2022, it’s our view that valuations have become dislocated from the resilience shown in unlisted property, and are therefore presenting an attractive entry point for long term investors.”

CBRE Investment Management Portfolio Manager, Justin Pica, commented, “In the current market environment of high inflation and volatility and with the likeliness of reduced economic growth over the coming year, it’s important to have a widely diversified portfolio. Historically REITS have outperformed equities during periods of high inflation and offer the opportunity for attractive returns relative to equities and an attractive yield relative to bonds.

“Our proven investment process aims to add value through active stock selection and robust risk management and portfolio construction and is backed by in-depth fundamental market knowledge and investment expertise that leverages the strength and in-depth local private market research platform of CBRE.  We are delighted to partner with UBS to launch this strategy to Australian investors with a leading investment platform such as Praemium.”

EWL Partner, Ryan Loehr, remarked, “We strive to source the best investment solutions available for our clients, and as such, we’re thrilled to seed the first global property SMA with two of the world’s heavyweights in Asset Management, UBS and CBRE. We’re bullish on listed property right now given valuations are trading at rarely seen levels below Net Asset Value so we’re pleased that Praemium have continued to lead the market in terms of managed account innovation with the launch of this product”.

Praemium’s Head of Investment Managers and Governance Damian Cilmi adds, “We are pleased to be the first platform to offer the UBS CBRE Concentrated Global Property Model and to provide those investors seeking exposure to global property the opportunity to achieve this within an SMA. With a highly experienced investment team in CBRE Investment Management, and a proven track record in real assets, they are a wonderful addition to the menu of high-quality investment managers we provide our clients access to via the Praemium SMA.”

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Charles Hamieh

Leading investment platform provider Praemium has added ClearBridge Investments’ Developed Markets Infrastructure Income Model Portfolio to the Praemium Separately Managed Accounts (SMA) menu, providing greater access to the strategy.

Drawing on ClearBridge Investments’ strong global listed infrastructure capabilities, the Model Portfolio has been designed to produce attractive and stable returns by investing in an actively managed portfolio of infrastructure securities in developed markets.

The range of infrastructure sub-sectors in the portfolio includes gas, electricity and water utilities, toll roads, airports, rail and communications infrastructure throughout developed markets.

Top holdings in the portfolio include British multinational gas and electricity utility National Grid, US energy company Public Service Enterprise Group, Spanish electric utility Iberdrola, Scottish energy company SSE plc and toll road company Atlas Arteria.

As at 28 February 2022, the ClearBridge Developed Markets Infrastructure Income Model Portfolio produced a gross return of 21.0% since its inception**, compared with the 10.5% return for its benchmark, the OECD G7 Inflation Index + 5.5%.

Portfolio Manager Charles Hamieh says infrastructure is at the centre of several long-term thematics, including COVID recovery stimulus programs, decarbonisation and the transition to net-zero, transport efficiency and digital connectivity.

Hamieh says that in the current environment exposure to infrastructure assets can help protect against the impact of rising inflation.

“For a lot of infrastructure assets, inflation is a pass-through. If you look at toll road or airport operators, they will increase tariffs or tolls with inflation. If you look at a utility, there is either a  direct or indirect pass-through of inflation in its revenue model. Inflation is a positive in that sense.

“There will be increases at the cost line but the net cashflow position is neutral to positive,” Hamieh says.

Praemium’s Head of Investment Managers and Governance, Damian Cilmi says: “As we enter a higher inflation environment, having access to portfolios that offer the opportunity for diversification and some protection from inflation will be increasingly important for investors.  We’re pleased that Praemium is one of the first SMAs to offer advisers and their clients access to ClearBridge Investment’s infrastructure portfolio.“

Ryan Loehr, Partner at leading wealth advisory firm Emanual Whyborne has welcomed the addition of the ClearBridge model portfolio to Praemium.

“We recognised the likelihood of accelerating inflation post record levels of stimulus and the impact this would have on valuations. ClearBridge, offers listed infrastructure solutions that offer our  clients more stability than traditional equities.

“We view infrastructure as a preferred asset class and we regard ClearBridge as market leaders in this space. ClearBridge’s fund performance , particularly over the last year and during the market sell-off since mid-November is a testament to their experience and capabilities. Direct, convenient access to their model income portfolio via this leading platform is a positive for advisors and clients alike in our view,” Mr Loehr said.

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