Resolution Capital launches active ETF

Resolution Capital has launched an active exchange traded fund (ETF) focused on global property securities.

The Resolution Capital Global Property Securities ETF would list on the Australian Securities Exchange (ASX) today.

A unit trust version of the fund had been running since September 2008 but this was the first time it would be available as an ETF.

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The fund invested in institutional-grade real estate assets in major cities including logistics, data centres, life science research, medical centres and apartment buildings.

Andrew Parsons, chief investment officer at Resolution Capital, said: “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”.

He said global REITs had a role to play in a world of rising inflation as they could act as a hedge in portfolios.

“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 mean 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.”

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