• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to secondary sidebar
  • Skip to footer
  • Subscribe
  • Twitter
  • RSS Feed

Investment News NZ

Investment News provides financial advisers news stories from the financial industry in New Zealand. Subscribe to our free weekly newsletter.

  • Home
  • News
  • Kiwisaver
  • Subscribe
  • About
  • Advertise
  • Contact
You are here: Home / Investment News / Pathfinder 4: boutique serves up global real estate product

Pathfinder 4: boutique serves up global real estate product

July 26, 2015

John Berry: Pathfinder executive director
John Berry: Pathfinder executive director

A group of financial advisers have seeded a new Pathfinder Asset Management global property fund launched this week.

According to director, John Berry, the advisers have committed substantial support to the Pathfinder Global Property Fund with “good growth” in the product likely over the next six months at least.

Berry said the new fund, Pathfinder’s fourth, is targeting yield-focused investors looking for a more diversified take on property.

He said New Zealand investors tend to be overweight local property – direct and listed – with little exposure to the much more diverse global market.

“Our view is that investors should be looking outside NZ for listed property,” Berry said. “At the moment valuations in the local [listed property] are high, it’s a narrow market with little diversification in sectors.”

He said the Pathfinder fund would invest in between 50-100 global listed property stocks and trusts (from a total universe of about 300) with approximately 80 securities – including four NZ-based listed property companies – in the launch portfolio.

“In the initial portfolio 90 per cent of the investments will be Real Estate Investment Trusts (REITs) and 10 per cent will have a company structure,” Berry said. “We hold the REITs/companies directly, which offers investors the most cost efficient access.”

He said while underlying yields varied across the regions and sectors the fund will invest in, in combination with Pathfinder’s hedging overlay – expected to typically sit in the upper end of the 50-100 per cent range – income should be on par with a pure NZ listed property exposure.

“The yield on a portfolio of offshore property stocks plus the yield uplift through currency hedging delivers a similar overall yield to a portfolio of NZ property stocks (but with better diversification and valuation metrics),” Berry said.

The Pathfinder fund would also focus on companies and REITs whose primary business was from owning and renting properties, rather than real estate service firms.

“There will be some element of property development,” he said.

Pathfinder’s current property picks include US retail on office space “which are each trading at around a 10% discount to NAV [net asset value]”.

“We see Japan as very expensive with limited upside and other parts of Asia (like Hong Kong and Singapore) as good value.  HK is trading at a discount of around 30 per cent to NAV,” Berry said. “We also see value in European property, particularly as the Eurozone economy slowly recovers.”

The Pathfinder product is structured as a portfolio investment entity (PIE) with a 0.79 per cent base fee and a further 0.21 per cent trustee and admin expense. Public Trust is trustee while MMC provides fund administration.

While the fund is aimed at yield investors, Berry said it will not pay distributions with income accruing in the unit price.

He said although “some investors would prefer distributions”, it was more cost-effective for the fund not to.

The Auckland-based boutique manager currently has about $105 million under management spread across three funds covering, global equity, commodities and a water theme.

Pathfinder recently commissioned Nelson-based company JM Consulting to review its global equity fund, citing a dearth of local research options servicing the boutique market.

 

Twitter0
LinkedIn0
Google+0
Facebook0

Read More » Investment News

Recent articles

  • New Salt suite to spice up fund mix January 17, 2021
  • Wealth head quits ASB for Tower job; Platinum loses Asia manager; Matterson moves from Milliman January 17, 2021
  • Westpac follows ANZ with Northern Trust mandate… January 17, 2021
  • … as Trust Management wins over another senior BT investment hand January 17, 2021
  • Capital ventures into BlackRock’s ETF territory January 17, 2021
  • Fresh CIO role as South Pacific aims for co-investments January 17, 2021
  • Lessons from 2020: don’t stop thinking about tomorrow January 17, 2021
  • SSGA to push big firms on ESG, stays mum on merger January 17, 2021
  • Low-carbon switch: why electric future turns on listed infrastructure investor January 17, 2021

Primary Sidebar

WEEKLY NEWSLETTER

Sign up here to receive our weekly newsletter.
Learn More »

Most Recent Investment News

New Salt suite to spice up fund mix

January 17, 2021

Wealth head quits ASB for Tower job; Platinum loses Asia manager; Matterson moves from Milliman

January 17, 2021

Westpac follows ANZ with Northern Trust mandate…

January 17, 2021

… as Trust Management wins over another senior BT investment hand

January 17, 2021

Capital ventures into BlackRock’s ETF territory

January 17, 2021

Search by Keyword

Investment News

  • New Salt suite to spice up fund mix January 17, 2021
  • Wealth head quits ASB for Tower job; Platinum loses Asia manager; Matterson moves from Milliman January 17, 2021
  • Westpac follows ANZ with Northern Trust mandate… January 17, 2021
  • … as Trust Management wins over another senior BT investment hand January 17, 2021
  • Capital ventures into BlackRock’s ETF territory January 17, 2021
  • Fresh CIO role as South Pacific aims for co-investments January 17, 2021
  • Lessons from 2020: don’t stop thinking about tomorrow January 17, 2021
  • SSGA to push big firms on ESG, stays mum on merger January 17, 2021
  • Low-carbon switch: why electric future turns on listed infrastructure investor January 17, 2021
  • Bitcoin: the nonsensical asset that makes sense for the times January 17, 2021

Investment News Archive

Most Popular Articles

  • Westpac NZ flags retail advice sale to Forsyth Barr posted on October 19, 2020
  • The horror year in technicolour: free KiwiSaver 13 report released posted on September 30, 2020
  • NZ share-trading splurge could trigger tax alarms… posted on October 5, 2020
  • Flint set to spark platform competition posted on August 17, 2020
  • Four to the core: Smartshares to expand, rearrange and reprice ETFs posted on June 22, 2020
  • Kitset KiwiSaver scheme set to unwrap in spring posted on April 27, 2020
  • Funds eye bargains, self-shoppers hoard cash, KiwiSavers turn conservative posted on March 15, 2020
  • AMP Capital NZ chief quits amid equities exodus offshore posted on August 28, 2020

Sponosored Content

David-Boyle

On the industry play-list: four chart-topping regulations for 2021

David-Boyle

Charge of the lite (advice) brigade

Nathan Field

Pandemic Baby Boom a Bust

Star-date 2020: it’s inflation Jim but not as we know it

Quick-links to Popular News

  • FAP Compliance
  • Coronavirus
  • New Appointments
  • Financial Markets Authority (FMA)
  • Kiwisaver
  • Climate Change
  • Crypto Currency
  • Blockchain
  • Insurance

Secondary Sidebar

Recent News

  • New Salt suite to spice up fund mix January 17, 2021
  • Wealth head quits ASB for Tower job; Platinum loses Asia manager; Matterson moves from Milliman January 17, 2021
  • Westpac follows ANZ with Northern Trust mandate… January 17, 2021
  • … as Trust Management wins over another senior BT investment hand January 17, 2021
  • Capital ventures into BlackRock’s ETF territory January 17, 2021
  • Fresh CIO role as South Pacific aims for co-investments January 17, 2021
  • Lessons from 2020: don’t stop thinking about tomorrow January 17, 2021
  • SSGA to push big firms on ESG, stays mum on merger January 17, 2021
  • Low-carbon switch: why electric future turns on listed infrastructure investor January 17, 2021
  • Bitcoin: the nonsensical asset that makes sense for the times January 17, 2021

Footer

Copyright ©2020 InvestmentNews.co.nz — All Rights Reserved ·— Terms & Conditions