A global real estate securities fund pools investor money to buy shares in listed property companies and REITs across multiple geographies. Rather than owning buildings directly, the fund holds securities whose value derives from portfolios of income-producing property. The 'global' element matters because the Australian listed property market is small and concentrated relative to outside geographies, and some of the fastest-growing property sectors are thinly represented in Australia.
What the fund actually holds
Quay portfolios are made up of listed securities — REITs and property operating companies — selected across sectors and geographies. A global mandate can, for example, reach logistics in North America, residential in Europe, healthcare and data centres across multiple markets, and specialist sectors such as self-storage and student accommodation. This breadth is difficult to assemble through direct property ownership and in Australia is one of the central reasons investors use a global listed structure.
Active versus index-based funds
Global real estate securities funds come in two broad forms. 1) Index, or passive, funds aim to replicate a benchmark such as the FTSE EPRA Nareit Developed index. 2) Active funds, including Quay's, select securities on their own merits and can differ substantially from the index. Quay runs a concentrated portfolio of 20 to 40 securities chosen for the quality and sustainability of their rental income, with a real-return objective rather than an index-relative one.
How investors access these funds in Australia
Australian investors can access global real estate securities funds as unlisted managed funds or as ETFs quoted on exchanges including the ASX. Quay's strategy is available in both an unhedged and an AUD-hedged active ETF form. Whether a fund is hedged affects how movements in the Australian dollar flow through to returns.
Frequently asked questions
- How is a global real estate fund different from an Australian property fund?
An Australian property fund focuses on A-REITs and domestic assets. A global fund invests across multiple geographies and includes property sectors that are under-represented in the Australian market.
- Should I choose a hedged or unhedged fund?
Hedging reduces the effect of currency movements on returns; an unhedged fund retains that currency exposure. Which structure suits an investor depends on their objectives and existing portfolio.