MLC breaks out global property strategy
MLC has made its global property strategy more readily accessible to investors with the introduction of a global property sector fund.
Since the strategy’s inception in 2005 the financial services organisation has only made it available via its Horizon Series of portfolios.
However, the new MLC Global Property Fund will give investors the opportunity to use the strategy in their portfolios by way of a standalone sector fund.
MLC head of investment strategy Paul Duncan said: “Global listed property is a great way for investors to access the benefits of the listed property asset class, such as regular income and protection from long-term inflation, utilising a highly diversified strategy.”
The new fund will employ the services of three underlying fund managers, with a 20 per cent allocation to Resolution Capital, and 40 per cent allocations to both LaSalle Investment Management (Securities) LP and Morgan Stanley Investment Management.
The underlying managers are not restricted by geography, giving them the ability to invest in emerging economies as well as real estate markets in their infancy.
“The 100 per cent global property allocation enables investors to access relatively immature markets with more growth potential and much greater diversification than the Australian market currently offers,” Duncan said.
Investors in the fund will not be subject to fluctuations brought about by foreign currency movements, as the offering will be hedged to the Australian dollar.
The MLC Global Property Fund has already been included as part of the MLC MasterKey Custom menu and will appear on the MasterKey platform from July 1 of this year.
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