FP Foresight Sustainable Real Estate Securities Fund delivers strong sustainability-driven performance in its first year
Independent infrastructure and private equity investment manager Foresight Group's (Foresight) Foresight Sustainable Real Estate Securities Fund (REF), has delivered a very strong first year of performance, with a total return of 14.13 per cent and an indicated yield of 3.8 per cent.
The Fund has provided attractive and low correlated returns for investors through its exposure to global real estate sectors accessed through publicly traded Real Estate Investment Trusts (REITs). Correlation to global equity markets over the Fund’s first year was low, with a beta of just 0.37. The fund's 180-day volatility was 9.9 per cent, which was below both domestic and international equity markets, providing investors with a source of risk reduction and diversification within portfolios.
Structural shifts around e-commerce, data consumption and housing demand have driven strong underlying performance in global real estate sectors such as logistics, data centres and timber. The Fund has combined these structural growth themes with bespoke Sustainable Investment Criteria, providing an additional layer of performance as sustainability continues to drive competitive advantages in cost of capital and property leasing activity for REITs.
The opportunities for real estate investors wishing to focus on high growth sectors combined with a clear process for identifying sustainability excellence are significant, and the Fund is very well positioned to continue to generate returns at the intersection of these core themes.
Managed by the award-winning Foresight Capital Management team, REF was launched in 2020 to provide investors with a sustainability-driven and highly liquid access point to a globally diversified portfolio of REITs.
Mark Brennan, Partner at Foresight Capital Management, says: “REF has had a highly successful first year, delivering strong returns and attractive risk characteristics for its investors. The importance of liquidity and sector selection within property and real estate has become clear in recent years, and the Fund has combined this focus with Foresight’s proprietary sustainability process. REF’s first year has demonstrated that real estate as an allocation within portfolios can continue to provide diversification, income and deep liquidity”.