5 years of the SGH LaSalle Concentrated Global Property Fund

5 years of the SGH LaSalle Concentrated Global Property Fund

29th Oct 2024

SG Hiscock & Company (SGH) and LaSalle Investment Management are proud to announce the 5th anniversary of the SGH LaSalle Concentrated Global Property Fund 

In September 2024, the fund ranked first in Morningstar’s Australia OE Equity Global Real Estate category based on annualised performance. It delivered a return of 7.74% per annum—2.78% higher than the next fund in its category. This outstanding achievement highlights the fund’s ability to deliver positive client returns. Thanks to its strategy, it succeeded despite the backdrop of heightened inflation and interest rates.  

According to Matt Sgrizzi, Chief Investment Officer and Lead Portfolio Manager at LaSalle, “The genesis for the development of the strategy was an identified gap in the market. The fund was designed to pursue high-conviction global investment opportunities that provide solid fundamentals over the medium to long term. 

Our team was able to continue to provide attractive absolute returns. We did this by investing in real estate companies offering deep value and identifying sector and market dislocations.” 

 

A winning strategy in a shifting market 

The success of the SGH LaSalle Concentrated Global Property Fund coincides with broader positive trends in the global real estate sector. Recent actions from central banks bolster these trends. Mr Sgrizzi explained: “The Fed’s 50 basis point rate cut is a tailwind for the listed property sector. We expect a global monetary policy easing cycle to kick in further as more central banks cut policy rates or forecast to do so.” 

“With central bankers beginning to ease policy, investor focus is beginning to shift away from that dynamic. It’s starting to tilt toward the degree of cooling in the economy and its ultimate magnitude.” 

From a valuation perspective, Mr Sgrizzi says REITs offer positive but mixed signals. These signals reflect the broader market context. “REITs are trading at moderate premiums to our marked-down private market real estate values. Certain sectors and regions continue to offer sizable discounts. Private values remain challenging to pinpoint. They should become clearer as the ‘bid-ask’ spread continues to narrow and transaction activity continues to increase, with the potential for an uptick in values. 

 

Looking ahead 

According to Mr. Sgrizzi, the forward outlook for REITs remains positive. As financial conditions ease and transaction volumes increase, real estate values are expected to stabilise and recover. 

“Our forward outlook for REIT returns remains constructive, with financial conditions likely to be less of a headwind. Growth remains solid. Strong financial positions for many REITs position the sector to perform well and take advantage of opportunities”.

Further easing in financial conditions could act as an additional tailwind to the sector and further support real estate values,” Mr Sgrizzi concluded. 

 

Interested to find out more about SG Hiscock’s Partnership Program? Visit the SGH Partnership Program.

For more information about LaSalle Investment Management, head to https://www.lasalle.com/.

 


Disclaimers

Equity Trustees Limited (“Equity Trustees”) (ABN 46 004 031 298), AFSL 240975, is the Responsible Entity for the SGH LaSalle Concentrated Global Property Fund (“the Fund”). Equity Trustees is a subsidiary of EQT Holdings Limited (ABN 22 607 797 615), a publicly listed company on the Australian Securities Exchange (ASX: EQT).

This article has been prepared by SG Hiscock & Company to provide you with general information only. In preparing this article, we did not take into account the investment objectives, financial situation or particular needs of any particular person. It is not intended to take the place of professional advice, and you should not take action on specific issues in reliance on this information. Neither SG Hiscock & Company, Equity Trustees, nor any of its related parties, their employees or directors, provide and warranty of accuracy or reliability in relation to such information or accept any liability to any person who relies on it. Past performance should not be taken as an indicator of future performance. You should obtain a copy of the Product Disclosure Statement before making a decision about whether to invest in this product.

SGH LaSalle Concentrated Global Property Fund’s Target Market Determination is available here. A Target Market Determination is a document that is required to be made available from 5 October 2021. It describes who this financial product is likely to be appropriate for (i.e. the target market) and any conditions around how the product can be distributed to investors. It also describes the events or circumstances where the Target Market Determination for this financial product may need to be reviewed.