Dexus Global REIT Fund - DXGRF

The Dexus Global REIT Fund (DXGRF) is an actively managed fund offering investors exposure to a diversified portfolio of global listed property securities across North America, Europe, and Asia Pacific.

The fund's strategy focuses on defensive growth opportunities by investing in REITs leveraged to accelerating structural trends for sustained rental growth and total return. DXGRF aims to provide investors with a consistent and relatively high-income stream, monthly distributions, and the opportunity for capital growth.

It actively manages its non-index-weighted portfolio to deliver a gross annual income yield in excess of the GPR 250 REIT Index (AU) Yield while providing lower-than-market volatility over a five-to-seven-year time horizon, maintaining the real value of investments.

Access defensive growth opportunities leveraged to accelerating global trends

The Dexus Global REIT Fund (DXGRF) is an actively managed fund providing investors with exposure to a diversified portfolio of global listed property securities.

Investing for sustainable growth, relative total return and lower-than-market volatility, DXGRF invests in a portfolio of Real Estate Investment Trusts (REITs) listed in North America, Europe and Asia Pacific, concentrating on the regions and property types where developing structural trends and local fundamentals are driving the best prospects for sustained rental growth and total investment return.

DXGRF is designed for investors looking to access the relatively defensive and real asset qualities of commercial property through an actively managed portfolio of listed real estate securities. The fund offers global diversification and access to thousands of individual properties, along with further diversification via exposure to real estate types not available within the Australian market.

Diversification

Investing in a property securities fund gives you access to REITs across global markets providing you with investment, geographic, sector and tenant diversification.

Unique opportunities

The Fund has access to investment opportunities, markets and diversity which may not be available to individual investors.

Regular income

The Fund aims to provide a consistent and relatively high-income stream (compared with the performance benchmark), monthly distributions, as well as the opportunity for some capital growth.

Investment specialists

The Fund is actively managed by a team of specialists with significant experience and specialist expertise in the property investment market.

Investment objectives

The primary investment return objectives of the fund aim to:

• deliver a gross annual income yield (before management fees, expenses and taxes) in excess of the performance benchmark, being the GPR 250 REIT Index (AU) Yield or equivalent in Australian dollars.
• provide lower-than-market volatility compared with the GPR 250 REIT Index (AU) (or equivalent Global REITs Index) over a 5–7-year time horizon
• maintain the real value of investments over a 5–7-year time horizon (where real value is measured against the weighted-average CPI for those countries within the GPR 250 REIT Index (AU) (or equivalent)).

Investment Strategy

• The Fund will invest primarily in real estate investment entities (including REITs and mortgage REITs) listed on securities exchanges around the world (including Australia) as well as cash and fixed interest investments.
• The Fund may also invest in preferred, hybrid and/or debt securities in such REITs.
• 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. However, the entities in which the Fund invests may borrow.
• It is our current policy not to use derivatives for currency hedging or leverage purposes within the Fund. The Fund may use derivatives for risk management purposes. Underlying investments in which the Fund invests may use derivatives.
• The current investment mandate and asset allocation parameters of the Fund commenced on 1 April 2020, which is the date from which performance will be assessed.

By choosing to invest in the Fund, you are investing with an experienced investment manager. The Responsible Entity (RE) has an investment track record since 1998, and since August 2021 has been part of the Dexus Group. The key benefits and features of investing in the Fund are summarised below.

The RE is an active investment manager and constructs portfolios independent of 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 RE's determination of the relative value and attractiveness of the property security investment globally will determine the Fund's weightings of underlying investments.

By evaluating the potential risks and rewards of the underlying REITs and actively investing in REITs outside indices such as the GPR 250 REIT Net Index (AU), the Fund aims to provide greater diversification benefits and lower risk than those included in that index.

Income returns

A significant focus for the management of the Fund is generating sustainable and regular income returns. This typically means that the Fund targets those listed property securities that the RE 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 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 gain exposure to a diversified and professionally managed portfolio of listed REITs across global markets primarily underpinned by quality commercial real estate.

The distributions received will predominantly 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 the RE's determination of the relative value and attractiveness of the property security investment.

Limiting exposure to higher risk earnings

The RE limits the Fund's exposure to earnings derived from corporate 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 broader global property securities, which are likely to incorporate a range of properties securities that are not limited to REITs.

The Fund is suited to investors who:

• are seeking consistent and relatively high levels of income.
• are wanting access to a diversified portfolio of quality global REITs over the medium to long term.
• are intending to use the Fund as a minor allocation or satellite allocation within a broader investment portfolio.
• have a high or very high risk/return profile for that portion of their investment portfolio.

All information contained on this website (“Information”) is subject to change without notice. While every care has been taken in the preparation of the Information, to the extent permitted by law, Dexus: DXS, its related body corporates and each of their respective directors, officers and employees do not make any representation or warranty or warranty, express or implied, as to the accuracy, currency, reliability or completeness of any statement in it, including, without limitation, any forecasts, and do not guarantee the repayment of capital, or the performance of or any particular rate of return for the Dexus fund referred to on this website.  Past performance is not a reliable indicator of future performance.   
 
The Information has been prepared for the purpose of providing general information only, without taking account of any particular investor’s objectives, financial situation or needs. Investors should, before making any investment decisions, consider the appropriateness of the Information, and seek professional advice, having regard to their objectives, financial situation and needs. 

Dexus Asset Management Limited (ACN 080 674 479, AFSL No. 237500) (“DXAM”) is the responsible entity of Dexus Global REIT Fund (ARSN 642 411 292) (“Fund”) and issuer of the Fund.  DXAM is a wholly owned subsidiary of Dexus: DXS. 

Before you receive any financial service from us (including deciding to acquire or to continue to hold a product in any fund mentioned in this material), or act on this material, you should obtain and consider the relevant product disclosure statement(s) (“PDS”), DXAM financial services guide ("FSG”) and relevant target market determination (“TMD”) in full, consider the appropriateness of this material having regard to your own objectives, financial situation and needs and seek independent legal, tax and financial advice. The PDS, FSG and TMD (hard copy or electronic copy) are available from DXAM, Level 5, 80 Collins Street (South Tower), Melbourne VIC 3000, by visiting https://www.dexus.com/investor-centre, by emailing investorservices@dexus.com or by phoning 1300 374 029. 

The Information should not be considered to be comprehensive or to comprise all the information which a potential investor may require in order to determine whether to invest in the Fund. The Information is not intended for distribution or use in any jurisdiction where it would be contrary to applicable laws, regulations or directives.

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