UBS Asset Management and CBRE Investment Management have joined forces to launch the UBS CBRE Concentrated Global Property Model on the Praemium SMA.
The model is said to be the first separately managed account (SMA) portfolio in the Australian market to provide investors with an actively managed portfolio of global listed property securities.
“To launch this Global Property SMA is a logical next step for us given our long-standing partnership with the CBRE investment team through our four existing funds, and UBS’ expertise in Managed Accounts globally,” commented Alison Telfer, country head of UBS Asset Management for Australia & New Zealand.
“Additionally, this launch comes at an opportune time. Whilst REITs, like most asset classes, have experienced volatility throughout 2022, it’s our view that valuations have become dislocated from the resilience shown in unlisted property, and are therefore presenting an attractive entry point for long-term investors.”
CBRE’s proprietary multi-step investment process is used to identify between 25 and 45 compelling global property securities across geographic and economic sectors.
According to CBRE Investment Management portfolio manager Justin Pica, REITs have historically outperformed equities during periods of high inflation, providing the opportunity for attractive returns relative to equities and an attractive yield relative to bonds.
“Our proven investment process aims to add value through active stock selection and robust risk management and portfolio construction, and is backed by in-depth fundamental market knowledge and investment expertise that leverages the strength and in-depth local private market research platform of CBRE,” he said.
“We are delighted to partner with UBS to launch this strategy to Australian investors with a leading investment platform such as Praemium.”
Praemium head of investment managers and governance Damian Cilmi noted that the firm was pleased to be the first to offer the new model and to provide investors who are seeking exposure to global property the opportunity to achieve this within an SMA.
“With a highly experienced investment team in CBRE Investment Management, and a proven track record in real assets, they are a wonderful addition to the menu of high-quality investment managers we provide our clients access to via the Praemium SMA,” he added.
