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Global Real Estate Carbon Reduction
At-a-glance
| Provides access to |
ESG global real estate
|
| Investable universe |
Companies that demonstrate carbon reduction criteria and ESG ratings thresholds within: •Residential •Office •Retail •Industrial •Lodging •Healthcare •Infrastructure •Net lease •Specialty |
| Benchmark |
FTSE EPRA Nareit Developed Index
|
| Permitted investments |
Real estate companies that satisfy at least one of the following requirements: •Achieved carbon neutrality without significant reliance on carbon offsets •Display a track record of reducing carbon emissions or carbon emission intensity •Have a credible target to reduce carbon emissions or carbon emissions intensity •Have a Science Based Targets initiative (SBTi)-approved carbon reduction target |
Overview
The strategy aims to provide long-term capital appreciation and current income by investing in real estate companies that have either achieved carbon neutrality, or have a target to or track record of reducing greenhouse gas emissions in a manner that is aligned with the Paris Agreement. In the EU the strategy is reporting as Article 9 under the Sustainable Finance Disclosure Regulation (SFDR).
Strategy highlights
- Total return potential: portfolio constructed to highlight high conviction stock ideas while preserving diverse exposure to factors such as duration, sectors, leverage and currency
- Championing carbon reduction: proprietary, rigorous approach creates a universe of real estate companies that exclusively meet our carbon reduction criteria and our “do no significant harm” threshold. The selected companies have a track record or a target to reduce carbon emissions at a pace consistent with prevailing scientific and political goals
- Deep understanding of companies: well-resourced team uses an active, bottom-up approach to take advantage of short-term mispricings and position for longer-term structural trends
Investing in real estate companies that are leaders in their industry in terms of reducing overall carbon footprints is compelling from both an environmental and an economic standpoint. Meanwhile, investors can potentially benefit from the lower valuations, good earnings, robust dividend growth and healthy fundamentals offered by REITs.
Portfolio management team
Related material
Our offices
Important information on risk
Past performance is no guarantee of future results. All investments carry a certain degree of risk, including the possible loss of principal, and there is no assurance that an investment will provide positive performance over any period of time. Certain products and services may not be available to all entities or persons. There is no guarantee that investment objectives will be achieved.
Real estate investments are subject to various risks associated with ownership of real estate-related assets, including fluctuations in property values, higher expenses or lower income than expected, potential environmental problems and liability, and risks related to leasing of properties.
Responsible investing incorporates Environmental Social Governance (ESG) factors that may affect exposure to issuers, sectors, industries, limiting the type and number of investment opportunities available, which could result in excluding investments that perform well.
ESG integration incorporates financially relevant ESG factors into investment research in support of portfolio management for actively managed strategies. Financial relevancy of ESG factors varies by asset class and investment strategy. Applicability of ESG factors may differ across investment strategies. ESG factors are among many factors considered in evaluating an investment decision, and unless otherwise stated in the relevant offering memorandum or prospectus, do not alter the investment guidelines, strategy or objectives.
