Performance of the Liquid Property Strategy

The Harvest Liquid Property Strategy aims to provide investors with an alternative to direct property investment. The Strategy offers global property exposure combining the ability to trade freely with the availability of a reliable stream of income.

It is Harvest’s view that property represents both an appropriate and highly attractive asset class for long term investment purposes, whether for pension funds or for other forms of long-term savings. Over the long term, global property prices tend to move ahead of inflation while also offering investors a strong and reliable source of income.

Source – Financial Express

Summary of Investment Objective

The investment objectives of this strategy are threefold

• to take advantage of the income generating power of property.
• to gain a diversified exposure to global property.
• to buy into an asset class which has under performed internationally in recent years.

Strategy Overview

Base Currency – EUR

Total Net Assets – €975M

Annual Distribution Target (Net) – 4.0%

Liquidity – Daily

Performance of the Harvest Liquid Property Strategy

Commentary on Recent performance (January 2023)

2022 was a challenging year for property funds generally, but was particularly so for listed REITs, and this was reflected in the performance of the Liquid Property Strategy. The negative trend was partly in response to general equity market weakness and partly as a result of sentiment turning against property worldwide due to the expected interest rate increases. The three component REITs in this strategy are now trading at very large discounts to the value of the real estate assets on their balance sheets and at least on the face of it are currently offering very attractive value. The wide geographic and sectoral exposure offered by the strategy, combined with the anti-inflationary characteristics of property, should assist in bringing about a meaningful recovery in capital value terms over the next few months. In addition, we
would expect income levels from the strategy to continue to grow as indexed rents provide a growing level of income to the underlying funds.

How do I find out more about the Harvest Liquid Property Strategy?

To find out more about the Harvest Liquid Property Strategy and to determine if it is suitable and appropriate for your portfolio please speak to your Client Advisor, call us on 01 237 5500 or email justask@harvestfinancial.ie