Principal Real Estate Investors has been chosen as the underlying active manager for BT Investment Solutions’ (BTIS) Global Property MPS separately managed account (SMA), designed for the CoreSeries Portfolios on BT Panorama.
BTIS had over $1 billion in funds under management (FUM) as of May 2021, across multiple global real estate investment trust (GREIT) strategies allocated to Principal.
Helen de Mestre, Principal Global Investors managing director and head of Australia, said the recent GREIT rally indicated the strong outlook for the sector was in line with the global economic recovery.
“We’re delighted to be working with BTIS, whom we have a long-standing relationship with, in order to service retail clients,” de Mestre said.
“Our investment philosophy focuses on quality and growth with a strong emphasis on thematic tailwinds.
“Global listed property remains an attractive, risk adjusted investment opportunity as the structural challenges in the sector (as seen through the significant dislocation in GREIT valuations in the past year) provides a perfect market for active managers to capture alpha as part of a diversified portfolio.”
The Principal Global Real Estate Securities strategy aimed to outperform the FTSE EPRA Nareit Developed Index and was focused on “exploiting” mispricing at a stock level by conducting detailed, bottom-up fundamental research and identifying where expectations differed from consensus.
James McSkimming, BTIS head of equities, said: “Our partnership with Principal exemplifies our commitment to having managers that bring differentiated characteristics suited to the single manager profiles like the fund”.