Zenith backs global listed property
By Michael Bailey
RESEARCH house Zenith Investment Partners has put global property funds on its recommended list for the first time, but shunned those managed solely from Australia.
The two funds given the tick are the Deutsche Asset Management (DeAM) Global and Global (ex-Australia) Property Securities Funds.
Zenith researcher Ben Davis said a major point in DeAM’s favour was its ability to internally manage listed property trusts (LPTs) from offices in San Francisco, Chicago, London, Hong Kong, Tokyo and Sydney.
“Although domestic LPTs have increased their exposure to offshore assets, Zenith believes domestic LPT funds do not have the resources to adequately assess global securities,” Davis said.
“We believe investors should utilise a properly constructed, global property securities fund, which accesses a manager with resources on the ground in each region, combined with an ability to appropriately allocate between these regions.”
Davis said an adviser with an income-focused or medium risk client would be best off investing in the ex-Australia version of DeAM’s Global Property Securities Fund, in combination with a domestic LPT fund.
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