Resolution Capital launches real asset fund
Resolution Capital has announced it is launching its new Resolution Capital Real Asset Fund after it has obtained unitholder approval to change the investment strategy of the Resolution Capital Core Plus Property Securities Fund.
The firm said that the new strategy would allow up to 50% of the fund’s portfolio by gross asset value to be invested in Australian Listed Infrastructure (ALI) securities while at least 50% would continue to be invested in Australian Real estate investment trusts (A-REITs).
Resolution Capital’s chief investment officer, Andrew Parsons, said the expansion of the fund and subsequent name change, which would allow for inclusion of listed infrastructure securities, was expected to improve the diversification and the risk-adjusted return profile of the fund.
“Australia is one of the fastest growing developed countries and two core elements which underpin a developed country’s growth are property and infrastructure,” Parsons said.
We believe the best way for investors to gain exposure to Australia’s growth and urbanisation is through a diverse portfolio of high-quality A-REITs and Australian Listed Infrastructure.”
Following the announcement, the firm said that the management fees for the fund would be reduced from 0.70% p.a. to 0.65% p.a. and there would be no changes to how the performance fee would be calculated.
Also, the listed infrastructure investment strategy changes only applied to the Resolution Capital Core Plus Property Securities Fund and there were no changes to any Resolution Capital’s other funds.
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