Australian REIT managers struggle to outperform
The global real estate investment trust (REIT) sector has enjoyed stronger absolute returns over the 12 months to April but Australian REIT managers have been finding difficulty in outperforming the index, according to Zenith.
The research house found the global REITs remained currency unhedged and benefited strongly from the prevailing currency tailwinds.
Zenith analyst, Jonathan Baird said all of the active global property managers on Zenith's approved product list outperformed its benchmark.
"After discussing the outlook for the sector, many managers believe that in light of the rising US interest rates and a diminishing valuation tailwind, increasingly challenging environment will predicate the need for prudent and skilled active management," Baird said.
"Pleasingly global managers have increased the level of active risk in portfolios with managers more prepared to invest in smaller names or take off-benchmark positions."
Recommended for you
Insignia Financial has reported net inflows of $448 million into its asset management division in the latest quarter, as well as popularity from advisers for its MLC managed accounts.
With ASIC questioning the dominance of research houses when it comes to retail usage of private market funds, a research house has shared how its ranking process sits alongside ASIC’s priorities.
Two Australian active fund managers have been singled out by Morningstar for their ability to achieve consistent performance and share price growth in the past 12 months.
Pinnacle Investment Management has expanded its private market coverage, forging a strategic partnership with a private markets manager via a 13 per cent stake acquisition.
