Principal steadies local business and considers global fund

Principal Global Investors is considering launching a global property securities fund due to a “growing appetite among investors” for the asset class, and has appointed two analysts in Australia to replace its recently departed three-man team.

“There seems to be quite a growing appetite among investors for global listed property securities. We are seriously considering launching a product and are in the process of bolstering our European operations in preparation for any launch,” a Principal spokesperson says.

In Sydney, the group has appointed Simon Hedger and Chris Lepherd as senior property analysts. Both will take up the slack created when former head of listed property trusts Stuart Stuckey and analysts Ern Koh and Mark Thorpe-Apps left the fund manager on May 2 to create start-up firm Pengana Capital.

Principal, however, has not replaced Stuckey, as the overall operations are now to be managed out of the US — a decision based on the growing proportion of international assets held by domestic listed property trusts.

The director of portfolio management, Kelly Rush, who is based in the group’s Des Moines, Iowa headquarters, will now have ultimate responsibility for the $500 million Australian business.

“Six years ago, the assets ofASXlisted property trusts were essentially all located in Australia. This has changed significantly, with 30 per cent of the assets of ASX listed property trusts now located overseas — predominantly in the US,” head of Principal’s Australian business Michael Migro says.

He adds that the proportion of offshore properties in Principal’s index is expected to increase.