Insights

Inflation is likely to remain transitory for the foreseeable future, but there are nevertheless some real opportunities for investors in global listed infrastructure and global listed real estate as they are asset classes that can leverage different economic environments, according to Bennelong Funds Management boutiques 4D Infrastructure and Quay Global Investors.

One of the many accepted truisms in real estate is properties with a long WALE (weighted average lease expiry) tend to be lower risk.

Two of Bennelong’s boutique partners, Bennelong Australian Equity Partners (BAEP) and Quay Global Investors, have won awards at today’s 2021 Zenith Fund Awards.

As vaccination rates increase around the world and we (hopefully) return to some normality in our daily lives, world economies appear to be stabilising. Economic output is near or above pre-pandemic levels, and signs of inflation and wage pressure have become a theme of 2021.

Listen as Chris Bedingfield gives an update on the G-REIT market.

Chris Bedingfield joins the Fear And Greed podcast to discuss his career and global listed real estate.

Imagine you are an office manager for a medium sized firm of 20 employees. Under normal circumstances, you and the staff would occupy around 400 sqm of office accommodation located in the CBD. But these are not normal circumstances. Lockdown orders mean that all staff are currently working from home.

When investing in real estate, higher inflation is more likely to be a friend than a foe, helping protect investment from supply side issues and driving up the residual value of improvements, says Justin Blaess, portfolio manager at Quay Global Investors.

We’ve often stated that real estate (listed and direct) tends to outperform equities during periods of high inflation and have previously cited the following chart as evidence of this dynamic.