September, 2023
The Ironbark Global Property Securities Fund (the ‘Fund’) returned -5.02% (net) for the quarter, outperforming the FTSE EPRA/NAREIT Developed Rental Index (hedged to $A, net) return of -5.84% by 0.82%.
Overall, outperformance was driven by positive stock selection. Allocation wise, the overweight to outperforming UK and bucket allocation in Continental Europe contributed. However, this was more than offset by the underweight to outperforming Continental Europe and bucket allocation in the Americas which detracted. At the stock level, selection was particularly strong in the Americas, Japan, Continental Europe, Australia, and Asia ex-Japan while the UK had a minor negative impact.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Ironbark-GPS-Quarterly-Report-8.pdfJune, 2023
The Ironbark Global Property Securities Fund (the ‘Fund’) returned 1.56% (net) for the quarter, outperforming the FTSE EPRA/NAREIT Developed Rental Index (hedged to $A, net) return of 0.61% by 0.95%.
Overall, outperformance was driven by positive stock selection while allocation was a modest detractor from relative performance.
Allocation wise, the underweight to underperforming Continental Europe contributed, however, this was more than offset by the overweight to underperforming UK, and bucket allocation in the Americas which had a negative impact. At the stock level, selection was particularly strong in the Americas, Japan, Continental Europe, and Australia. Asia ex-Japan also made a modest contribution while the UK detracted.
Americas performance review
The Americas portion of the portfolio returned 3.1%, outperforming the local benchmark return of 2.0% (in local currency terms). In the Americas, positive selection more than offset negative allocation. From an allocation perspective, the overweight to outperforming data centers was the leading contributor. Some of this outperformance could be attributed to artificial intelligence euphoria fueling the next growth cycle, but there are also some emerging trends in fundamentals and new construction. Data centers owners are gaining the upper hand in lease negotiations and are able to ask for more rent for space needs while also pushing through higher costs for power. Certain markets, such as Loudon County in Virginia (aka Data Center Alley), have seen a drop in new supplies. Meanwhile, selection was broadly positive led by healthcare, industrial, specialty, residential and self-storage. The only exception was net lease which had a minor negative impact on relative performance during the period.
Europe performance review
The UK portion of the portfolio returned -8.6%, underperforming the local benchmark return of -7.3% (in local currency terms), whilst the Continental Europe portion of the portfolio returned 2.0%, outperforming the local benchmark return of -2.5% (in local currency terms).
In the UK, positive selection within the smaller, niche orientated property stocks were more than offset by negative selection amongst the large caps. Amongst the smaller, niche orientated property stocks the overweight to outperforming Life Science REIT PLC was the leading contributor while amongst the large caps British Land Company PLC detracted as large caps with office and retail exposure bore the brunt of the selling. On the continent, selection was particularly strong in the Nordics. The underweight to Samhallsbyggnadsbolaget I Norden AB was a top contributor as the highly indebted Swedish commercial landlord halted dividend payments and canceled a rights issue after S&P cut the firm’s credit rating.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Ironbark-GPS-Quarterly-Report-7.pdfMarch, 2023
The Ironbark Global Property Securities Fund (the ‘Fund’) returned 0.96% (net) for the quarter, outperforming the FTSE EPRA/NAREIT Developed Rental Index (hedged to $A, net) return of -0.08 by 1.04%.
Overall, stock selection contributed to relative performance while allocation had a minor negative impact. From an allocation perspective, the underweight to underperforming Japan was the leading contributor. However, this was more than offset by the underweight to outperforming Continental Europe and bucket allocation in the Americas which also detracted. At the stock level, selection was particularly strong in the Americas, Asia ex-Japan and the UK. Selection was also positive in Australia and Continental Europe, while Japan had a minor negative impact.
Americas performance review
The Americas portion of the portfolio returned 5.2%, outperforming the local benchmark return of 4.8% (in local currency terms).
Positive stock selection helped to more than offset negative bucket allocation. From an allocation perspective, the underweight to underperforming office was the leading contributor. Office faces a tough economy and demand drivers flashing warning signals (i.e., business confidence). The sector also remains under pressure from the impact of COVID-19; leasing volumes are muted and, thus far, employers remain flexible and accommodative towards work-from-home trends in a tight labour market. Conversely, the underweight to outperforming malls was the leading negative contributor. Malls were up strongly given resilient consumer demand trends. The exposure to US towers also detracted. Higher rates and FX were a headwind early in the quarter, while forward guidance from one of the major tower companies came in below expectations, weighing on the group overall. At the stock level, selection was particularly strong within data centers, residential and healthcare. This was partially balanced by negative selection within office and industrial.
Europe performance review
The UK portion of the portfolio returned 7.5%, outperforming the local benchmark return of 4.1% (in local currency terms), whilst the Continental Europe portion of the portfolio returned 6.0%, performing in-line with the local benchmark of 6.0% (in local currency terms).
In the UK, selection within the smaller, niche orientated property stocks was very strong. The standout was the overweight to outperforming Grainger. ‘Build-to-rent’ focused Grainger delivered a strong result, delivering on its private rental pipeline and benefitting from strong rent growth which is correlated to wage inflation. Looking ahead, Grainger expects rising mortgage costs to drive rental demand. Meanwhile in Continental Europe, positive selection within retail was balanced by negative selection amongst the Nordic property stocks.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Ironbark-GPS-Quarterly-Report-6.pdfDecember, 2022
The Ironbark Global Property Securities Fund (the ‘Fund’) returned 4.70% (net) for the quarter, outperforming the FTSE EPRA/NAREIT Developed Rental Index (hedged to $A, net) return of 4.32% by 0.38%. Overall, stock selection contributed to relative performance while allocation had a minor negative impact. From an allocation perspective, the underweight to underperforming Japan was the leading contributor. However, this was more than offset by the underweight to outperforming Continental Europe and bucket allocation in the Americas which detracted. At the stock level, selection was particularly strong in the Americas, Asia ex-Japan and the UK. Selection was also positive in Australia and Continental Europe while Japan had a minor negative impact.
Americas performance review
The Americas portion of the portfolio returned 5.2%, outperforming the local benchmark return of 4.8% (in local currency terms). Positive stock selection helped to more than offset negative bucket allocation. From an allocation perspective, the underweight to underperforming office was the leading contributor. Office faces a tough economy and demand drivers flashing warning signals (i.e., business confidence). The sector also remains under pressure from the impact of COVID; leasing volumes are muted and, thus far, employers remain flexible and accommodative towards work-from-home trends in a tight labour market. Conversely, the underweight to outperforming malls was the leading negative contributor. Malls were up strongly given resilient consumer demand trends. The exposure to US towers also detracted. Higher rates and FX were a headwind early in the quarter, while forward guidance from one of the major tower companies came in below expectations, weighing on the group overall. At the stock level, selection was particularly strong within data centers, residential and healthcare. This was partially balanced by negative selection within office and industrial.
Europe performance review
The UK portion of the portfolio returned 7.5%, outperforming the local benchmark return of 4.1% (in local currency terms), whilst the Continental Europe portion of the portfolio returned 6.0%, performing in-line with the local benchmark of 6.0% (in local currency terms). In the UK, selection within the smaller, niche orientated property stocks was very strong. The standout was the overweight to outperforming Grainger PLC. ‘Build-to-rent’ focused Grainger delivered a strong result, delivering on its private rental pipeline and benefitting from strong rent growth which is correlated to wage inflation. Looking ahead, Grainger expects rising mortgage costs to drive rental demand. Meanwhile, in Continental Europe positive selection within retail was balanced by negative selection amongst the Nordic property stocks.
September, 2022
The Ironbark Global Property Securities Fund (the ‘Fund’) returned -11.22% (net) for the quarter, underperforming the FTSE EPRA/NAREIT Developed Rental Index Net Hedged to $A return of -10.78% by 0.44%. Overall, allocation and stock selection slightly detracted from relative performance. From an allocation perspective, the underweight to underperforming Continental Europe was the leading contributor. However, this was more than offset by the overweight to underperforming UK and bucket allocation in the Americas and Continental Europe which detracted. At the stock level, selection was positive in Japan and Asia ex-Japan, however this was balanced by negative selection in the UK, Continental Europe, the Americas, and Australia.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Ironbark-GPS-Quarterly-Report-4.pdfJune, 2022
The Ironbark Global Property Securities Fund (the ‘Fund’) returned -18.10% (net) for the quarter, underperforming the FTSE EPRA/NAREIT Developed Rental Index Net Hedged to $A return of -16.96% by -1.14%.
Overall, allocation contributed to relative performance and stock selection detracted. From an allocation perspective, the underweight to underperforming Continental Europe had a positive impact, along with bucket allocation in the Americas. This was partially offset by the underweight to outperforming Japan and Asia ex-Japan, and bucket allocation in Continental Europe which detracted. At the stock level, selection was positive in the UK, however, selection in the Americas, Continental Europe, Australia, Japan and Asia exJapan was negative.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Ironbark-GPS-Quarterly-Report-3.pdfMarch, 2022
The Ironbark Global Property Securities Fund (the ‘Fund’) returned -5.08% (net) for the quarter, underperforming the FTSE EPRA/NAREIT Developed Rental Index Net Hedged to $A return of -3.56% by -1.52%.
Overall, allocation and stock selection both had a negative impact on relative performance. From an allocation perspective, the leading negative contributors were bucket allocation in the Americas and Continental Europe. The underweight to outperforming Asia ex Japan also had a negative impact. At the stock level, selection was positive in Asia ex Japan, Continental Europe and Japan, however, this was more than offset by negative selection in the Americas, UK and Australia.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Ironbark-GPS-Quarterly-Report-2.pdfMarch, 2021
The Ironbark Global Property Securities Fund (the ‘Fund’) returned 7.32% (net) for the quarter, outperforming the FTSE EPRA/NAREIT Developed Index return of 7.27% by 0.05%. Overall, allocation contributed, and stock selection detracted from relative performance over the quarter. From an allocation perspective, the leading contributor was the underweight to underperforming Continental Europe. Positive bucket allocation in the Americas was another strong contributor over the period, the overweight to reopening plays in malls and hotels, and the underweight to data centres
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Ironbark-GPS-Quarterly-Report-1.pdfDecember, 2020
The Ironbark Global Property Securities Fund (the ‘Fund’) returned 9.93% (net) for the quarter, underperforming the FTSE EPRA/NAREIT Developed Index return of 10.63% by 0.70%. Overall, allocation and stock selection both detracted from relative performance over the quarter. From an allocation perspective, the underweight to underperforming Japan was the leading contributor, however this was more than offset by negative bucket allocation in the Americas. At the stock level, selection was particularly strong in Japan. However, selection detracted in the Americas, Continental Europe and the UK.
File: https://commentary.quantreports.net/wp-content/uploads/2021/02/Ironbark-GPS-Quarterly-Report.pdfasset_class: Property and Infrastructure
asset_category: Global Listed Property
peer_benchmark: Property - Global Listed Property Index
broad_market_index: Dvlp Global Real Estate
manager_contact_details: Array
ticker: MGL0011AU
release_schedule: Quarterly
commentary_block: Array
factsheet_url:
https://ironbarkam.com/funds/ironbark-global-property-securities-fund/
Performance
Quarterly Report
fund_features:
Ironbark Global Property Securities aims to outperform its benchmark, after fees, over rolling three year periods. The Fund invests in property securities listed on recognized stock exchanges around the world (including Australia). The Fund may also invest in unlisted Initial Public Offering (‘IPO’) securities, provided those securities are expected to be listed within three months of issue. The Fund may have exposure to derivatives for investment and currency management purposes. In particular, derivatives may be used by the Investment Manager for hedging to protect an asset in the Fund against market value fluctuations; to reduce volatility in the Fund; as a substitute for a physical security; or when adjusting asset exposures within the investment parameters of the Fund.
structure: Managed Fund