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Dexus AREIT Fund

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About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/100165-2022-11-03-02:23.pdf
FUND MANAGER Dexus Asset Management Limited
ASX Code
APIR APN0008AU
ASSET CLASS PROPERTY
INVESTMENT STYLE The APN AREIT Fund is an income focused, award winning property securities fund that invests in a portfolio of listed Australian Real Estate Investment Trusts (AREITs).
INVESTMENT PROFILE To provide investors with a consistent, relatively high level of income combined with some capital growth, sourced primarily from AREITs listed on the ASX.
CURRENCY MANAGEMENT Unhedged
INCEPTION DATE 19-01-2009
BENCHMARK S&P/ASX 200 AREIT Index Dividend Yield
FUND SIZE S&P/ASX 200 AREIT Index Dividend Yield
DISTRIBUTION FREQUENCY Monthly
NO. OF HOLDINGS
FEES 0.85% p.a.
STRUCTURE

Benefits

Benefits

Benefits of investing in the Dexus AREIT Fund

Active management

Dexus is an active investment manager and constructs portfolios independent of index weightings. By evaluating the potential risks and rewards of the underlying AREIT stocks and actively investing in stocks outside of the S&P/AREIT 300 Index, the Fund aims to provide greater diversification benefits and lower risk returns than the market.

Income returns

A significant focus for the management of the Fund is on generating sustainable and regular income returns. This typically means that the Fund targets those investments it believes can deliver relatively high and sustainable income returns.

Exposure to commercial real estate

Direct investment in commercial real estate can be difficult and is often beyond the realm of possibility of many retail investors due to the large capital commitment and specialist knowledge that is generally required to invest in this sector. The Fund provides an ideal way for investors to invest in a diversified and professionally managed portfolio of listed AREITs to gain exposure to the benefits of a portfolio of quality commercial real estate. The distributions received predominately come from rental income of the underlying commercial properties that are owned by these property securities.

Non index weightings

Unlike many property securities funds which invest significantly on the basis of the weighting of a particular property security investment in an index, the Fund will invest on the basis of Dexus's determination of the relative value and attractiveness of the property security investment.

Limiting exposure to higher risk earnings

Dexus limits the Fund's exposure to earnings derived from international assets and active business activities, such as property development or funds management type activities, which are generally considered riskier earnings. This strategy aims to deliver lower risk compared to the risk of investing in the AREIT Index.

Risk Level
Medium

The risk of your investment falling in the short term is higher than an investment in a managed investment scheme that invests in assets such as cash or fixed interest securities. Conversely, an investment in the Fund over the medium to long term offers potentially higher returns than cash or fixed interest investments.

Investor suitability

Medium to long term investors who are looking for an income focussed investment and the potential for some long term capital growth.

RISK LEVEL
INVESTOR SUITABILITY

Risks

Title
Detail

Key Features

Investment objectives

The primary investment objectives of the Fund are to:

  • deliver a high level of distributable income by achieving a gross annual income yield (before management fees and expenses) that is equivalent to at least 110% of the average yield of the S&P/ASX 300 AREIT Dividend Yield;
  • endeavour to deliver a tax advantaged income component of distributed income;
  • provide a level of capital growth which at least matches increases in CPI over a 5-7 year time horizon; and
  • provide lower than market volatility.

Investment Strategy

The Fund will invest in AREITs and cash/fixed interest. The Fund will not invest in direct property. We will continually review and, if appropriate, reweight the Fund's investments with the objective of optimising the Fund's distributable income.

The Constitution allows us to borrow on behalf of the Fund. It is our current intention that the Fund will not undertake direct borrowing. The entities in which the Fund will invest may borrow.

Mandate

How we invest your money

Target asset allocations

Assets: Long-term asset allocation ranges / Indicative asset allocation

  • Units or shares in AREITs: 90-100% / 98&
  • Cash / Fixed interest: 0-10% / 2%

Derivatives

It is our current policy not to use derivatives for leverage or risk management purposes within the Fund. We will inform you if this policy changes. The entities in which the Fund will invest may use derivatives.