Fiduciary launches global property fund
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.
Recommended for you
Platinum Asset Management has provided an update on the possibility of a merger with asset manager L1 Capital following a period of due diligence.
Commentators may be forecasting consolidation in private market firms but a survey of the industry itself expects new manager formation will still outpace this, especially in Asia Pacific.
Fund manager Pacific Current has appointed a former superannuation chief executive as its newest chair, succeeding Tony Robinson who departs after almost a decade to focus on his role at COG Financial.
The possibility of a private credit ETF is looking unlikely for now with US vehicles seeing limited uptake, according to commentators, but fixed income alternatives exist that can provide investors with a similar return.
