Resolution Capital has upped its global equities fund's exposure to Australia and Britain, and reversed its Australia-centric fund's negative bias on property firm GPT Group. Managing director Andrew Parsons said on Friday Resolution's global fund had also reduced its exposure to the North American and Asian markets.
"We've increased our exposure to Australia and the UK, and we've probably reduced our exposure to North America and, interestingly, Asia," Parsons told Reuters on the sidelines of a European Public Real Estate Association (EPRA) conference. Parsons said while, from an investment point of view, Asia was popular 2-3 months ago, "we thought it was probably getting a bit overvalued.
"Certainly, with the UK and Australian balance sheets being repaired and being put in a far more robust position, we're seeing value opportunities emerging." He declined to quantify the fund's new level of exposure to Australia and Britain, or exactly what stocks were involved.
The global fund holds 15 listed property companies, and the top 10 of these at June 30, 2008, the company's website said, included Westfield Group in Australia and London-listed Liberty International. He said fund was also invested in British Land. "If the markets get cheaper, we'll increase our exposure," Parsons said. The fund was about 96 percent invested but "we will sell overvalued markets to buy undervalued markets if necessary".
Meanwhile, Parsons said Resolution's Australia-centric fund had reversed its "huge bias" against Australian property trust GPT Group to take an overweight stance. That's probably the most dramatic change in that portfolio," he said, citing GPT's move to clear its exposure to Babcock & Brown and a more focused strategy.