Inflection Point Capital Management is the investment advisor for a new listed real estate securities fund launched by sister firm La Française Forum Securities (LFFS). Groupe La Française, which has over €15 billion in real estate assets under management, has seeded the new strategy with €20m.
LFFS has been managing listed real estate securities for more than 15 years, with asset management centres based in Frankfurt, New York, London, Paris & Singapore, and is firmly established in green investing, with two 100% green collective real estate investment vehicles. In 2014 the Journal of Environmental Investing listed LFFS “Among the most influential environmental investors.”
The fund will adhere to IPCM’s broad Strategically Aware Investing™ (SAI) philosophy, which goes beyond traditional ESG analysis to include a company’s innovation capacity and ability to respond quickly to changing market requirements. A ten-year back-test of the strategy demonstrates an annual ‘sustainability premium’ of around 340 basis points. There was also a ‘climate dividend’ as the companies selected for the portfolio have lower than benchmark emissions.
Noting the strong correlation between real estate companies’ environmental and financial performance, IPCM founder and CEO Dr Matthew Kiernan says: “The investment thesis underpinning the strategy is that real estate companies whose underlying properties are more ‘eco-efficient’ than those of their competitors will tend to out-perform in the medium and long term — with more rental and resale pricing power, greater tenant satisfaction and retention and lower energy costs