Salt has appointed Cohen & Steers to manage the investment portfolio.
The Fund’s investment objective is to exceed the total return of its benchmark, the FTSE EPRA/NAREIT Developed Real Estate Index hedged in New Zealand Dollars (after fees and expenses but before tax), 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 the 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.
FUND FACTS
Benchmark - FTSE EPRA/NAREIT Developed Index Net Total Return Index
Recommended investment time frame - 5 years
Inception date - 16 September 2021
Fund Size - $31 million
COHEN & STEERS
In 1986, Marty Cohen and Bob Steers set out to help investors capitalise on the emerging opportunity they saw in public REITs. They were convinced that listed real estate could open the market to investors, drive demand and make real estate a larger share of portfolios globally, while also offering opportunities to generate meaningful alpha. It was fertile ground for an active asset management business that continues to thrive today.
Through careful consideration, they have added to their investment capabilities, becoming the largest manager of preferred securities and establishing a global research platform for real estate, infrastructure and other listed real assets. Their focus is delivering superior investment performance, building around our core strengths in real assets and alternative income to meet the growing demand for yield, diversification and real returns.
INDUSTRY INSIGHTS
Evan Serton
Senior Portfolio Specialist
Cohen & Steers
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.
ESG Integration
Deep analysis of environmental, social and corporate governance (ESG) issues is critical to unlocking value and mitigating risk.
REITs
Real Estate
Equity Securities
Dividend
Discount
Model
Going Concern Valuation
Net
Asset
Value
Liquidation Value
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
Cohen & Steers Real Estate ESG Integration Framework
As an industry leader in real assets and alternative income, Cohen & Steers is focused on delivering superior risk- adjusted returns and income for clients. Committed to pursuing excellence that results in responsible investing practices. Their Real Estate ESG Integration Framework can be read by clicking the button below.
