What does Presima offer its clients ?
Presima offers accredited and institutional investors, opportunities to invest in real estate equity portfolios that are quoted on the world's prominent stock exchanges. Approximately 95 percent of the assets under management are invested outside Canada, and more than 50 percent of these are usually invested in Europe and Asian-Pacific countries.
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What sets Presima apart from its competitors ?
Presima offers access to liquid, globally diverse real estate equities. Real estate has always had the reputation of offering limited liquidity and being geographically specific. This has given real estate, as an investment class, the status of a product that offers current returns, but one for which the possibilities for capital appreciation were often subject to economic variations between countries, regions and cities, and even between local sectors. Because of its knowledge of the overall market, Presima is in a position to build portfolios that offer interesting current returns along with the capacity to leverage the best global opportunities for capital appreciation.
Presima is synonymous with liquid real estate investments because its tightly focused, highly experienced team is at the leading edge in the evolution of real estate market investments. This focus and experience, combined with the management team’s record of generating solid returns, is what sets Presima apart from the competition.
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What are the advantages of including real estate in an investment portfolio?
Real estate benefits from a low correlation with other asset classes; this is why adding real estate to a traditional portfolio, for a given level of return, lowers the overall risk; on the other hand, for a given risk level, it provides superior expected return. Another advantage of real estate is that it offers protection against inflation.
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What are the advantages of adding securitized real estate (i.e. listed on an exchange) to a portfolio ?
Real estate that is quoted on a stock exchange provides a portfolio with total return, i.e. current revenue plus capital appreciation.
As well, the recent, quick and international expansion of this asset class means that liquid real estate is now a reality. Presima makes it accessible. We believe the number of public companies that are part of our investment universe and that allow us to seek opportunities between geographical markets and real estate sectors will continue to increase over the coming years.
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What type of clientele does Presima target ?
Presima targets any type of institutional investor — such as pension funds, corporate funds and foundations.
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How much must one invest to benefit from Presima's expertise ?
The Nevis Fund is open to Canadian pension funds and other retirement-related institutional investors who have a non-taxable status and can subscribe a minimum of $5 million. The Nevis-T Fund is designed for an accredited, taxable Canadian clientele that can contribute a minimum amount of $1.5 million. Presima also offers management through discretionary mandates. However, these mandates usually require substantial amounts.
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Will Presima's expertise eventually be available to smaller investors ?
Presima’s products and services are presently designed for institutional or knowledgeable clients, and our business plan does not involve offering our management services on a retail basis.
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How does Presima manage its customer services ?
A representative is always available to ensure our clients receive highly professional, consistent, quality client service. Our portfolio managers meet personally with our clients, according to needs, to present them with performance results, review management strategies, and discuss with them their goals for the coming quarters.
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What are Presima’s requirements in terms of management fees ?
Presima's management fees are related to the scope of the mandate or the size of the investment. They are comparable to those investment firms ask for international mandates (MSCI EASE) or small cap mandates.
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How many different investment strategies does Presima offer ?
Presima has two distinct investment strategies: the Global Relative Return strategy, which essentially comprises long positions, and the Global Absolute Return strategy, which combines long, short, and pair trade positions. The Global Absolute Return strategy is currently unavailble to third-party investors.
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How can an investor benefit from the Global Relative Return strategy ?
The Global Relative Return strategy is made available to institutional investors who are active in the retirement area through the Nevis and Nevis-T pooled funds. Investors who entrust us with large mandates are entitled to distinct portfolio management.
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How does Presima create value for its clients ?
The Nevis funds are managed according to the Global Relative Return strategy. Their goal is to produce a return that exceeds the FTSE EPRA/NAREIT Global Real Estate index by 200 points annually. These returns are obtained by actively managing a portfolio that comprises 30 to 40 international securities (REITs and REOCs), which are considered by our team to offer the best risk-return potential. These securities are among more than 320 included in the reference index, and among the 870 real estate equities that comprise the Presima investment universe.
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How does an investor benefit from the Global Absolute Return strategy ?
Presima does not intend to create an investment vehicle that will make this management approach available, in the short-term.
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How does Presima create value for investors who benefit from the Global Absolute Return strategy ?
The objective of this investment strategy is to generate absolute return with lower than market volatility. Generally, when combined with long and pair trade positions, short positions reduce the capital base that is necessary to attain targeted returns. Conversely to the Global Relative Return strategy, the Global Absolute Return strategy aims to leverage both positive and negative equity movements. As for the Global Relative Return strategy, these equities are among more than 320 included in the reference index, and among the 870 real estate equities that comprise the Presima investment universe. The Global Absolute Return strategy is currently unavailble to third-party investors.
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When were these two investment strategies created ?
The Global Relative Return strategy has existed since 1998, and it was opened to institutional investors and high net worth individuals on January 12, 2005.
The Global Absolute Return strategy has existed since 2002.
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Who makes up the portfolio management team ?
Presima relies on a solid portfolio management team that is located in Montreal, and comprises high level managers and analysts, each of whom focuses on specific geographic and real estate sectors. Most have worked for Presima for several years and possess numerous years of experience with exchange-traded real estate equities.
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What is your reference index ?
The reference index for the Global Relative Return strategy portfolios is the FTSE EPRA/NAREIT Global Real Estate index, which is internationally recognized and is published by the FTSE Group.
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What level of returns can Nevis Funds investors hope for in the future ?
The returns generated by the Nevis Funds depend partly on global economic and real estate environments. However, thanks to the possibility of non-synchronicity between different countries and real estate sectors, Presima believes it is ideally positioned to seize the best opportunities and produce interesting returns for its clients, whether in absolute or relative terms.
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In the Nevis Funds, are the invested assets under management protected against currency fluctuations ?
Presima’s clients possess their own expertise or vision concerning currency fluctuation and the necessity of protecting themselves against it. They can choose to protect themselves against currency fluctuations, either through our trustee, State Street, or through their own financial institution.
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Is Relative Return Strategy limited by any constraints, in terms of geographic and sectoral weightings ?
In compliance with the terms and conditions of the Global Relative Return strategy, the weighting of a sector in a portfolio cannot exceed twice the weighting of that specific sector in the reference index. As for the weighting of a country in a portfolio, it cannot exceed twice the weighting of that country in the reference index, or 10% of the portfolio’s market value, if higher.
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What kind of liquidity do Nevis Funds have ?
Whether it is the case of a contribution to, or a withdrawal of capital from, one the Nevis Funds, Presima's objective is to attain liquidity similar to that of Canadian or American equity holdings.
As a rule, in replicating or selling positions that are already in the portfolio, it takes approximately one whole day–besides normal transaction delays–to carry out the necessary transactions on the world stock exchanges.
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Is it possible to obtain a distribution of current revenues ?
Some clients prefer to receive a distribution of current revenues, which is absolutely feasible. Distributions are made, minimally, on a monthly basis for all Nevis funds participants.
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What are REITs? What are REOCs ?
REITs are Real Estate Investment Trusts which, in the name of their holders, secure real estate investments, in buildings, mortgages, and real estate company equities, for example.
REITs generally involve special tax measures that vary according to the fiscal policies of each country. These equities normally offer high dividends and therefore represent interesting alternatives to direct ownership of real estate assets.
REOCs are Real Estate Operating Companies that sell equities representing participation in the equity of a company, such as ordinary or preferred stock. Presima invests in companies that are listed on the stock exchange and have at least 50 percent of their value related to real estate activities.
Therefore, both REITs and REOCs are equities that are listed on stock exchanges. Presima never invests directly in the underlying assets of these companies, but rather in their equity.
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