POWERED BY MOMENTUM MEDIA
Global real estate looking attractive
Nervous investors looking for a safe haven can park their money in global real estate, with rental yields looking attractive in what is generally a low interest rate environment, according to Standard Life head of real estate David Paine.
Poor sentiment has led to over-hasty selling in recent weeks, and opportunities exist for savvy investors to exploit inefficiencies in market and uncover value, said Paine.
"Good quality commercial property is likely to remain resilient despite the global economic slowdown, which we expect to result in a period of weak growth rather than outright recession," Paine said.
One the whole, the fundamentals looked sound, with tenant demand for most global property rising and occupier confidence and business investment on the up, he said.
"Vacancy rates have generally been falling globally, and strong rental growth has been recorded in some of the highly cyclical, supply-constrained office markets such as Hong Kong, London and Paris."
As for Asian markets, Paine was confident despite a slowdown in activity in Singapore and a tightening of the labour market in Hong Kong.
"The [Asia] region's robust underlying growth dynamics are expected to continue to underpin real estate markets," Paine said.
Standard Life was of the opinion that the US would avoid a double-dip, although it expected to see continued slower growth.
"That said, relatively low borrowing costs are set to continue to aid the US residential markets, with mortgage rates falling to the lowest level (4.15 per cent) in more than 50 years," Paine said.
European real estate was still looking favourable on a yield basis when compared to government bonds and cash, Paine said.
Recommended for you
The corporate watchdog is preparing to publish a progress report on private credit this September, following a comprehensive review of the rapidly expanding market.
The fund has appointed Fotine Kotsilas as its new chief risk officer, continuing a series of executive changes aimed at driving growth, but NGS Super’s CEO has assured the fund won’t pursue growth for growth’s sake.
AMP Super has taken a strategic stake in Atmos Renewables, funding major battery and wind farm projects to boost Australia’s clean energy transition.
The major superannuation fund is facing legal action from ASIC after allegedly failing to inform the regulator about investigations into serious member service issues.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
74.26 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(%)
