SALT SUSTAINABLE GLOBAL LISTED PROPERTY FUND
in Global Real Estate
Salt Funds has appointed Cohen & Steers to manage the portfolio.
The Fund’s investment objective is to exceed the total return of its benchmark, the FTSE EPRA/NAREIT Developed Index Net Total Return Index in New Zealand dollars on a rolling three-year basis.
The Fund applies a research-intensive approach to consistently value global real estate securities. The investment process uses a proprietary valuation model that ranks global real estate securities on price-to-NAV and price-to-dividend discount models, which it believes are the primary determinants of real estate security valuation, and guides country and company weighting decisions. Analysts incorporate both quantitative and qualitative analysis in their estimates, which are the inputs for the model.
The company research process includes an evaluation of management, strategy, property quality, financial strength and corporate structure. The investment team also uses a country macroeconomic framework that guides implementation of country over/underweights and adjusts for unique country stock drivers. Judgments with respect to risk control, diversification, liquidity and other factors overlay the model’s output and drive the portfolio managers’ investment decisions.
ESG analysis is an integral part of the investment process with distinct ESG factors relevant to each sector analysed in an effort to identify potential value and mitigate risks. Further insight is gained and positive change is driven through active engagement.
Benchmark - FTSE EPRA/NAREIT Developed Index Net Total Return Index
Recommended investment time frame - 5 years
Inception date - 16 September 2021
Fund Size - $32 million
Core Principals Guide Our Investment Process
Robust Pricing Analysis
REIT prices are driven by equity market factors in the short-term but follow underlying property values over the long-term.
Strong Focus on Fundamentals
Markets are in our view inherently inefficient at pricing in REIT fundamentals, creating opportunities to add value through active management We believe consistent alpha can be achieved through rigorous fundamental research, providing an information edge for identifying companies that are undervalued relative to asset values and growth prospects.
Deep analysis of environmental, social and corporate governance (ESG) issues is critical to unlocking value and mitigating risk.
Going Concern Valuation
Environmental, Social, Governance Factors are Key to the Strategy
Identify key ESG factors that impact shareholder value
Determine ESG scores for each company in investable universe
Integrate ESG scores into company valuation estimates
Encourage positive change