Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter

Investors ‘doubling up’ on Aussie real estate

Investors whose portfolios are dominated by Australian property should consider the diversification benefits of global listed real estate, according to a boutique investment manager.

Speaking to Mortgage Business’ sister publication, InvestorDaily, Quay Global Investors principal and portfolio manager Chris Bedingfield said it is quite difficult for Australian investors to get access to assets that are not perfectly correlated with domestic equities.

Given that most Australian stock market investors are already invested in the local property market via their mortgage, they are probably “doubling up” on their Australian real estate exposure, Mr Bedingfield said.

Advertisement
Advertisement

However, he added he was certainly not trying to “talk anyone out of real estate”, which he believes to be a “terrific asset class”.

“[Real estate] is a great way to protect yourself from inflation and to preserve capital – if you buy it at the right price,” Mr Bedingfield said.

“It may feel counter-intuitive, but if you actually had a piece of Australian real estate in a global real estate fund, you’ve probably got more diversification than if you’ve just got Australian equities.

“For example, for the fund and the global real estate unhedged index, the correlation to the Australian share market is almost zero. So it’s a real diversification play.”

Mr Bedingfield set up Quay Global Investors with Justin Blaess in 2013, running an unhedged global listed real estate fund out of Sydney.

Bennelong Funds Management picked up the boutique fund manager in May 2015, and launched a retail version of the fund earlier this year.

The Quay fund currently has around $5 million in funds under management, and Mr Bedingfield said he will be “very disappointed” if the fund is not sitting at $50 million by the end of 2016.

[Related: Investors own half of all Australian apartments]

Investors ‘doubling up’ on Aussie real estate
mortgagebusiness

Latest News

A big four bank has announced cuts to its variable home loan rates across both its owner-occupied and investment products, with its basic va...

The government’s AOFM has appointed Challenger Investment Partners as the external investment manager to oversee the administration and po...

Treasurer Josh Frydenberg has touted the benefits of comprehensive credit reporting after re-introducing the bill in Parliament. ...

FROM THE WEB
podcast

LATEST PODCAST: How lenders are attracting first home buyers

Do you think the mortgage market will see more consolidation this year?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.