The objective of the Advance Property Securities Fund is to provide long-term capital growth together with tax advantaged income through investment in property securities. The Fund aims to provide investors with a total investment return (before fees and taxes) that outperforms the S&P/ASX 200 Property Accumulation Index over periods of 5 years or longer.
MacarthurCook Fund Management Limited is the appointed investment manager of the Fund.
The Fund is a simple way to invest in the property market without tying up your money directly in real estate. You can participate in all sectors of the property market including office, hotels, retail, residential and industrial property. Listed property securities may provide a growing income stream with some tax advantages, due to depreciation and other allowances, as well as the potential for capital growth over time.
Investment Approach
MacarthurCook uses a "thematic top-down" approach in managing real estate securities.
MacarthurCook analyses the broader economic and REIT/property sector themes that it expects will prevail in the market going forward. These views are then applied to the investments via adjusting the weightings of the value, growth and risk factors, which are both qualatative and quantatative in nature, at an approximate 30/70 split.
This feeds through to an overall score being applied to each of the REITs, which are then ranked in amongst their individual sub-sectors. From this a portfolio of investments is then derived and actively traded, on the basis of price movements; results from the back-testing of the factors in picking REITs that outperform; changed market conditions and altered views of economic conditions and themes going forward. This is supplemented with MacarthurCook's own altered views on a REIT's management and strategy.