In this video Guy Barnard, Co-Head of Global Property Equities, discusses how the team has been operating amid the coronavirus lockdown, the effects on the market so far, and explains why no significant portfolio changes have been warranted.
- While not immune to the weakness seen in other risk assets, a key supporting factor is that real estate assets are typically backed by long-term leases, and therefore tend to have much more visible and robust income streams compared to many other areas of the equity market.
- The team benefits from a pragmatic investment process, which aims to limit top-down macro risks and focuses on bottom-up stock selection. The emphasis is on companies that are benefiting from structural tailwinds such as logistics, which is being driven by the rise in ecommerce, and those areas that are more defensive such as rental residential housing. The focus on balance sheet quality in recent years also adds to the view that the portfolios are well positioned to weather current uncertainty.