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Home Maximise the benefits of listed property exposure without concentration and geopolitical risks
February 21, 2025

Maximise the benefits of listed property exposure without concentration and geopolitical risks

Stuart Cartledge, Manager Director, Phoenix Portfolios

Listed property has long been a trusted avenue for investors seeking sustainable income and exposure to commercial real estate. However, recent trends have seen some asset consultants shift towards global property securities, raising questions about concentration risk in the local market. A broader, benchmark-unaware approach can help investors navigate these risks while maximising long-term returns.

 

The case for listed property

Navigating sector and stock concentration within the Australian listed property market can be challenging. However, there are compelling reasons to maintain exposure to listed property as part of a diversified portfolio:

Listed property has consistently outperformed global property markets
The sector has the ability to generate tax-advantaged income
It helps mitigate geopolitical instability risks
It reduces currency risk compared to global property investments
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The Cromwell Phoenix Property Securities Fund is a highly-rated, award-winning fund that follows a benchmark-unaware strategy, removing the concentration risk of investing in the index. It focuses on total return outcomes for investors, aiming to outperform the S&P/ASX 300 A-REIT Accumulation Index over the long term while maximising franking credits where possible.

Our approach seeks to uncover opportunities that maximise after-tax returns while delivering lower total risk compared to both the benchmark and global listed property investments.

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Key benefits of investing in the Fund:

Access to Australian tax structures, including franking credits and deferred tax, to boost after-tax returns
No withholding tax, unlike global property investments
Reduced exposure to international volatility and currency risks
Opportunities in under-researched, often overlooked stocks
Strong long-term benchmark outperformance, maximised after-tax returns, and lower total risk compared to global property investments
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The importance of franking credits

The Cromwell Phoenix Property Securities Fund is managed to maximise after-tax returns—the real measure that matters to investors. However, the funds management industry typically reports returns on a pre-tax basis, often under-pricing the value of franking credits.

Over the 3-, 5-, and 10-year periods to 30 June 2024, the Fund delivered an average uplift from franking credits of 0.84%, 0.71%, and 0.52%, respectively—effectively topping up investors’ income.

 

Join our upcoming webinar: Why your client's portfolio needs a slice of property

Would you like to explore how listed property could fit into your clients’ portfolios? Join our upcoming webinar, where Stuart Cartledge, Managing Director of Phoenix Portfolios and the portfolio manager of the Cromwell Phoenix Property Securities Fund, shares key benefits and strategies for investing in the sector.

Stuart Cartledge, Managing Director, Phoenix Portfolios

CPD points available.

Webinar details

Date: Wednesday, 9 April 2025
Time: 12.00 pm – 1.00 pm (AEST)

Property can be a powerful addition to a well-balanced portfolio, offering solid asset backing, inflation protection, and diversification benefits that differ from bonds and equities. But how can advisers navigate the complexities of listed property and identify the best opportunities?

Join Stuart as he shares insights on:

  • The role of property in portfolio construction and risk management
  • How listed property works and the diverse opportunities available
  • The tax considerations that can impact investment outcomes
  • Why active management is key to accessing the best opportunities in domestic listed property

With decades of experience in listed property investments, Stuart brings deep market insights and a proven track record of identifying attractive yet overlooked opportunities.

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