Fiduciary Trust Company International has launched an international property fund with the aim of providing investors with stable returns in an environment of low price volatility.
The Fiduciary International Property Income Fund, as it will be known, is an open-ended fund solely investing in international property trusts, with the majority domiciled in the US.
The fund will be managed out of New York by the group’s global real estate team, headed by senior vice president John Foster.
“The fund is a cost-effective way for Australian investors to take advantage of the many attractive opportunities now available in international real estate markets,” Foster says.
According to Franklin Templeton Institutional Australia managing director John Gall, international property trusts offer tax-transparent, liquid and effective ways for investors to access real estate.
“International property trusts can [also] provide strong diversification benefits due to low correlations of returns with other asset classes,” Gall says.
Fiduciary Trust is an affiliate of Franklin Templeton Institutional andFranklin Templeton Investments Australia.
Gall says the new fund is a restructure of Fiduciary’s Global Property Securities Fund.
“Previously, the portfolio included real estate operating companies, which offered lower dividend payout ratios, varying earnings profiles, high debt levels and high development and financial risks,” he says.
