POWERED BY MOMENTUM MEDIA
Caution urged on US property markets
Australian super funds need to be mindful of a growing wave of funds moving out of popular global property markets like New York and Houston when considering their own global property portfolios, according to AMP Capital fund manager Tim Fallet.
"Gateway" markets were not overpriced, but it was getting harder and harder to make returns on a core office investment stack-up, Fallet said.
It was a theme that has been building over the last six to nine months and is gathering more and more steam, he warned.
There is a wave of money that can't get into gateway markets and is instead being sent to top-tier secondary US markets such as Seattle, Tampa and Sacramento, which were the next level of capital, he said.
There are far better risk-adjusted returns for some of the secondary markets in the United States, Fallet said.
AMP Capital was seeing larger and larger dollar volumes sent into these areas, he said.
However, the properties had to be taken on a case-by-case basis and institutions should not be exiting gateway markets completely, he added.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Despite tariff challenges and a weaker US dollar, the investment manager remains optimistic that Asian markets, both big and small, stand to benefit.
The uncertainty surrounding US trade policy is weighing down global growth prospects, KPMG warns.
The US and Europe trade deal represents a significant step forward in resolving trade conflict, but markets have largely priced in the good news already, says the asset manager.
The Australian sharemarket is back to overvalued following the sharp rally since April, but many sectors still offer attractive stocks, according to the research firm.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
88.01 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
