Global Cities are places where people want to live, work and play. Their key characteristics are: strong infrastructure, diverse economies, advanced ESG polices, skilled labour force, and quality of life and culture. Investing in real estate assets within these cities gives exposure to a diverse range of sectors.
It's expected that by 2050, nearly 70% of the world's population (compared to 55% today) will reside in urban areas.
So knowing which cities stand to benefit from this demographic shift means investors can target the right opportunities. Investing in real assets within these cities gives exposure to a diverse range of industries (from data centers, self-storage and manufactured homes to conventional areas such as offices, retail, and industrial facilities) and access to economies that are expected to outperform national averages.
Global Cities also offer a solution to combating climate change. With two thirds of carbon emissions focused on cities, the transition to net zero carbon and achieving the goals set out in The Paris Agreement would require changes to first be made in these cities that are backed by sustainability policies. A clear example of the impact cities can make is seen in C40, a network of the world’s megacities that are committed to addressing climate change.
These cities’ foundations lie in superior sustainability policies, strong infrastructure, diverse economies, skilled labor and a high quality of life. They attract the best talent worldwide, which contributes to continuing economic growth.
*Source: UN, as at May 2018
"Global Cities are those which capture the world's attention and investment, they are international hubs for individuals and businesses. It is in these cities you will find world-class universities and enterprises - with governments working hard to ensure they continue to thrive."
Fitch Ratings Excellent (as at 16 June 2021)
Square Mile Investment Consulting and Research - Responsible A
Febelfin Towards Sustainability
During 2021 the Global Cities fund was subject to sustainability assessments from various parties. This analysis provides evidence of the rigour and extensive focus we apply in this crucial area.
In April the fund was awarded the Belgium Febelfin Towards Sustainability accreditation which signifies that it adheres to the highest quality standards for sustainable and socially responsible financial products.
In October the fund received a ‘Responsible A rating’ from Square Mile Investment Consulting and Research. The report stated that “ESG considerations are deeply embedded throughout the investment process, with the managers seeking to invest in sustainable real assets that enable society to meet its present needs without compromising the ability of future generations to meet theirs”.
Past performance is no guarantee of future performance. The value of investments and the income from them can go down as well as up, and you (or your clients) might not get back what you originally invested.