Foresight Group (Foresight) has revealed that its sustainable real estate securities product has delivered a total return of 14.13 percent and an indicated yield of 3.8 percent in its first year, growing to £51.3 millon in size.
The FP Foresight Sustainable Real Estate Securities Fund was launched in 2020 to offer investors a sustainability-driven and highly liquid access point to a globally diversified portfolio of real estate investment Trusts (REITs).
It aims to provide attractive and low correlated returns.
The firm believes that structural shifts around e-commerce, data consumption and housing demand have driven strong underlying performance in global real estate sectors such as logistics, data centres and timber.
The fund has combined these structural growth themes with bespoke sustainable investment criteria, providing an additional layer of performance as sustainability continues to drive competitive advantages in cost of capital and property leasing activity for REITs.
Correlation to global equity markets over the fund’s first year was low, with a beta of just 0.37, while 180-day volatility was 9.9 percent, which was below both domestic and international equity markets, providing investors with a source of risk reduction and diversification within portfolios.
Mark Brennan, partner at Foresight Capital Management, said: “REF has had a highly successful first year, delivering strong returns and attractive risk characteristics for its investors. The importance of liquidity and sector selection within property and real estate has become clear in recent years, and the Fund has combined this focus with Foresight’s proprietary sustainability process. REF’s first year has demonstrated that real estate as an allocation within portfolios can continue to provide diversification, income and deep liquidity”.