Foresight Group Holdings Ltd. · LSE:FSG
Foresight — Investor Presentation (August 2021)
44 slides from Foresight's investor presentation, August 2021
Slide 1: FP Foresight Sustainable Real Estate Securities Fund Investor Presentation
DRAFT FP FORESIGHT SUSTAINABLE REAL ESTATE SECURITIES FUND INVESTOR PRESENTATION August 2021
Slide 2: Table of Contents
Table of Contents 1 Introduction to Foresight 4 2 Investment Philosophy: Sustainable Real Estate 11 3 Investment Strategy and Process 17 4 The Portfolio 23 FP Foresight Sustainable Real Estate Securities Fund | 2
Slide 3: OEICs
OEICs This has been approved as a financial promotion for the purposes of Section 21 of the Financial Services and Markets Act 2000 by Foresight Group LLP (“Foresight Group”). Foresight Group is authorised and regulated by the Financial Conduct Authority (FRN 198020). Its registered office is The Sh
Slide 4: Introduction to Foresight
SECTION 1 Introduction to Foresight FP Foresight Sustainable Real Estate Securities Fund | 4
Slide 5: Foresight Group Overview
Foresight Group Overview A leading sustainability-driven global infrastructure and private equity manager £7.2bn £1.3bn assets under Foresight Capital management Management AUM 241 12 ESG group staff offices in 3 sustainability-led globally continents investments As at 30th July 2021 FP Foresight Su
Slide 6: Foresight Capital Management
Foresight Capital Management Specialists in listed real assets Listed Real ▪ The Foresight Capital Management team have been managing OEICs that invest in Real Asset Asset real assets since 2017. Investment Investment ▪ The team have a specialist and wide ranging knowledge of the listed real asset S
Slide 7: Foresight Capital Management track record
Foresight Capital Management Proven track record managing portfolios of listed real assets Total Return +34.73% 12 Month DPU 5.67p NAV £651m Total Return +39.15% 12 Month DPU 3.69p NAV £576m As at 30th July 2021, performance since inception FP Foresight Sustainable Real Estate Securities Fund | 7
Slide 8: Investment Team
Foresight Capital Management Investment Team The Fund is managed by a team of listed real asset investment specialists and material investment decisions are approved by the Fund’s Investment Committee. Fund Managers Investment Committee Mark Brennan Nick Scullion Eric Bright David Hughes Bernard Fai
Slide 9: Fund features
FP Foresight Sustainable Real Estate Securities Fund Fund features Fund Features FP Foresight Sustainable Real Estate Securities Fund Strategy Objective To provide an attractive income yield, that can be either distributed or reinvested, by investing in a global portfolio of sustainable listed real
Slide 10: Five reasons to invest
FP Foresight Sustainable Real Estate Securities Fund Five reasons to invest A highly liquid route to real estate exposure The Fund will invest solely into listed Real Estate Investment Trusts (and similar). 1 This means that liquidity is subject to being able to trade the shares on a stock exchange,
Slide 11: Investment Philosophy: Sustainable Real Estate
SECTION 2 Investment Philosophy: Sustainable Real Estate FP Foresight Sustainable Real Estate Securities Fund | 11
Slide 12: Sustainable Real Estate
Sustainable Real Estate “Sustainability in the real estate sector is a prominent issue as the industry has a Real Estate houses the economy, and so an significant impact on the approach to sustainability that fails to environment; buildings are address the energy consumption, carbon emissions and wi
Slide 13: Introduction to Listed Real Estate
Introduction to Listed Real Estate Since its establishment in the £1.75tn 1960s, the listed real total capitalisation of the estate sector has global listed REIT market become a mature and well established asset class within public markets 902 individual REITs 44% of US households invest in REITs So
Slide 14: Benefits of Listed Real Estate
Benefits of Listed Real Estate The Fund is designed to provide investors with a liquid exposure to real estate. This is achieved by the Fund investing exclusively into the publicly traded shares of listed REITs, rather than directly into bricks and mortar. This approach provides several core advanta
Slide 15: Model Portfolio Back-Testing
Model Portfolio Back-Testing Back-tested total returns of the Model Portfolio over the five years to June 2020 indicate the attractiveness of sustainable real estate investments. Since June 2015, the back-tested Model Portfolio has returned 14.91% p.a. vs 10.29% p.a. for global equities. Model Portf
Slide 16: Recovery Potential of Listed Real Estate
Recovery Potential of Listed Real Estate REITs have historically outperformed equities after market falls REITs have historically performed strongly following period of market turmoil. Using the equity market low in 2009 following the Global Financial Crisis, the below charts display the outperforma
Slide 17: Investment Strategy and Process
SECTION 3 Investment Strategy and Process FP Foresight Sustainable Real Estate Securities Fund | 17
Slide 18: Portfolio Construction
Portfolio Construction Target screening of the REIT universe identified an attractive opportunity set REIT Universe All listed companies that were tagged within Bloomberg as being classified 806 as REITs on a global basis. This screening generated 806 companies with a combined market capitalisation
Slide 19: Foresight Capital Management Investment Process
Foresight Capital Management Investment Process An active approach to company engagement A Focus on Engagement Global Reach Strategy Assessment We believe that engagement The Fund will hold assets in The company’s strategy is is a vital part of our active multiple geographies in order assessed to en
Slide 20: Foresight Capital Management Investment Process
Foresight Capital Management Investment Process An asset up approach to investment due diligence Assessment of the underlying assets The underlying assets that make up the Company’s portfolio are analysed in order to assess the quality of the assets themselves, and the quality of the future cash flo
Slide 21: Sustainability as an Enabler of Financial Performance
Sustainability as an Enabler of Financial Performance REITs that can target and deliver sustainability outcomes will have better access to capital markets, own higher value assets and attract the best tenants. REF’s portfolio is focused on companies that are already operating at the leading edge and
Slide 22: Assessment against the Sustainable Investment Criteria
Foresight Capital Management Investment Process Assessment against the Sustainable Investment Criteria In order to be included with the portfolio, all investments must provide a net social or environmental benefit and meet the Fund’s 3 part Sustainable Investment Criteria. 1 2 3 Stage 1: UN Global C
Slide 23: The Portfolio
SECTION 4 The Portfolio FP Foresight Sustainable Real Estate Securities Fund | 23
Slide 24: Portfolio Sector Breakdown
Portfolio Sector Breakdown The Fund has exposures to a variety of different sectors, proving multiple sources of returns 1.84% 3.06% 1.39% 3.17% 2.15% 1.31% 3.8% 26.61% 3.32% Logistics (26.61%) Cash (23.40%) 5.27% Healthcare & Social Housing (21.33%) Government Property (7.15%) 5.5% Data Centres (5.
Slide 25: Geographic Asset Breakdown
Geographic Asset Breakdown The Fund is globally diversified, providing access to leading real estate across the globe Asset % of Portfolio (listing location) Asset % of Portfolio (asset location) 4.7% 4.8% 5.9% 6.2% 1.0% 5.3% 13.2% 6.3% 47.3% 49.3% 28.9% 27.1% US (47.31%) US (49.30%) Japan (4.80%) U
Slide 26: Top 10 Portfolio Holdings
Top 10 Portfolio Holdings The top 10 portfolio holdings contains exposures to multiple key sectors Company Sector Listing Location Allocation Dream Industrial REIT Logistics Canada 7.74% Office Properties Income Trust Government Property United States 7.15% Medical Properties Trust Healthcare & Soci
Slide 27: OEIC Performance Chartbook: REF vs Global REITs
OEIC Performance Chartbook REF vs Global REITs Cumulative Total Return % 27 22 17 12 7 2 -3 -8 Jun/2020 Jul/2020 Aug/2020 Sep/2020 Oct/2020 Nov/2020 Dec/2020 Jan/2021 Feb/2021 Mar/2021 Apr/2021 May/2021 Jun/2021 Jul/2021 FP Foresight Sustainable Real Estate Securities Fund FTSE EPRA Nareit Developed
Slide 28: OEIC Performance Chartbook: REF vs Active Real Estate Funds
OEIC Performance Chartbook REF vs Active Real Estate Funds Cumulative Total Return % 30 25 20 15 10 5 0 -5 -10 Jun/2020 Jul/2020 Aug/2020 Sep/2020 Oct/2020 Nov/2020 Dec/2020 Jan/2021 Feb/2021 Mar/2021 Apr/2021 May/2021 Jun/2021 Jul/2021 Schroder Global Cities Real Estate Sarasin Sustainable Global R
Slide 29: Civitas Social Housing
Company name Civitas Social Housing Company Overview Investment Characteristics UK-listed REIT focused on specialist housing for the Civitas receive rent from Housing Associations and Care Providers supported living sector The funding they receive comes directly from Local Authorities, who P
Slide 30: Tritax Big Box
Company name Tritax Big Box Company Overview Investment Characteristics £2bn UK listed REIT that invests solely into Big Box logistics Modern and purpose built asset base assets High quality tenant base, with Amazon 13% of the rent roll High quality tenants, over 80% of which are listed on m
Slide 31: Key Features
FP Foresight Sustainable Real Estate Securities Fund Key Features Fund Name: FP Foresight Sustainable Real Estate Securities Fund Fund Structure: A sub-fund of FP Foresight OEIC, a UK open-ended investment company (“OEIC”) Regulatory Status: FCA Authorised UCITS IA Sector: Property Other Unit Type:
Slide 32: Appendices
FP FORESIGHT SUSTAINABLE REAL ESTATE SECURITIES FUND Appendices FP Foresight Sustainable Real Estate Securities Fund | 32
Slide 33: Benefits of blending
Benefits of blending… Low correlation to Foresight’s infrastructure strategies The table below displays the performance characteristics of combining REF with GRIF or FIIF in a portfolio, calculated from GRIF’s launch in June 2019 to REF’s launch in 2020 (and from FIIF’s inception). This analysis com
Slide 34: Crossover Between REF and the FCM Infrastructure Funds
Crossover Between REF and the FCM Infrastructure Funds Crossover between the three FCM OEICs remains relatively low. We believe the fund range should be able to be included as part of a diversified portfolio given the different risk and return factors that drive the underlying asset classes. REF FII
Slide 35: Ten Principles of the UN Global Compact
Ten Principles of the UN Global Compact By incorporating Global Compact principles into strategies and establishing a culture of integrity, companies are not only upholding their basic responsibilities to people and planet, but also setting the stage for long-term success. 1. Businesses should suppo
Slide 36: Listed Real Estate as a Recovery Strategy
Listed Real Estate as a Recovery Strategy REITs have historically outperformed equities after market falls REITs have historically performed strongly following periods of market turmoil. Using the equity market low in 2002 following the Dot Com Bubble, the below charts display the outperformance of
Slide 37: Sector Overview: Logistics
Sector Overview: Logistics Real Estate Characteristics • Warehouses of all sizes • Typically located near population hubs • Often modern and purpose built Typical Tenants • E-commerce retailers, such as Amazon, ASOS or Ocado • Logistics companies, such as FedEx, DHL and Royal Mail • Industrial manuf
Slide 38: Sector Overview: Data Centres & Communications
Sector Overview: Data Centres & Communications Real Estate Characteristics • Varying size depending on tenant needs • Assets are secure and pride themselves on high availability • Communications assets are towers and new micro-cells • Often located close to population hubs Typical Tenants • Cloud co
Slide 39: Sector Overview: Offices & Government Property
Sector Overview: Offices & Government Property Real Estate Characteristics • Modern and purpose built office space • Located in prime areas with strong economics • Favouring companies with best in class sustainability credentials Typical Tenants • Government agencies • Large technology companies, su
Slide 40: Sector Overview: Healthcare & Social Housing
Sector Overview: Healthcare & Social Housing Real Estate Characteristics • Varying property sizes from large hospitals to GP surgeries • Assets are built to a high specification • Occupancy levels are high, and leases are often inflation linked Typical Tenants • Private operators, who are typically
Slide 41: Sector Overview: Self Storage
Sector Overview: Self Storage Real Estate Characteristics • Purpose built, multi-story assets • Emphasis on being located near roads for easy access • Emphasis on security Typical Tenants • A variety of individuals and business users • Tenants using for short term storage • Tenants using for long te
Slide 42: Sector Overview: Forestry
Sector Overview: Forestry Real Estate Characteristics • Sustainable timberlands • Forests are primarily located in North America • Emphasis on sustainability Typical Tenants • Forestry assets are owned on balance sheet • Cash generated by the sale of timber and seedlings • Cash flow supported by str
Slide 43: Sector Overview: Commercial
Sector Overview: Commercial Real Estate Characteristics • Real estate that is used for business purposes, such as industrial, manufacturing, trade stores and supermarkets • Typically let on long, inflation linked leases • Often simple structures that can be repurposed Typical Tenants • Supermarket o
Slide 44: For further information, please contact
For further information, please contact: Foresight Group LLP The Shard t: +44 (0)20 3667 8100 32 London Bridge Street e: info@foresightgroup.eu London SE1 9SG w: foresightgroup.eu United Kingdom
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