This article is from the Australian Property Journal archive
CROMWELL yesterday launched a new property securities fund, to take advantage of discounted A-REITs.
The Cromwell Phoenix Property Securities Fund will target opportunities in the sector to capitalise on what Cromwell believes are undervalued stocks.
Cromwell’s executive chairman Paul Weightman said A-REITS have fallen more than 24% in the 12 months to March 31 2008.
“Both historically and on a net asset value basis we think selected companies within the A-REIT sector present significant value. The fund’s goal will be to find those companies which present the best opportunity for consistent returns and capital growth,” he added.
Cromwell has appointed boutique equity investment manager Phoenix Portfolios Pty Ltd to manage the Fund.
Phoenix is a “bottom-up” manager that builds portfolios of stocks that it believes are good-value selected through its own research. The team includes former Citigroup fund managers Stuart Cartledge and Michael Wood who have been selecting and researching stocks together for 15 years.
Cartledge said the A-REIT sector offers a very strong investment opportunity for the medium to long term investor.
“Recent market falls have created excellent buying opportunities in the A-REIT sector and we aim to build a strong performing portfolio of income producing securities for the new Fund,” he added.
The open-ended fund aims to outperform the S&P/ASX 300 A-REIT Accumulation Index over the medium to long term by building a diversified portfolio of predominantly ASX-listed property securities.
Cromwell will provide $5 million in seed capital for the fund.
Australian Property Journal
