Resolution Capital Global Property Securities Fund (ASX:RCAP) delivered an 18% net return for A Class units in the year to 30 June 2026, beating its hedged benchmark by 3.7 percentage points. Profit attributable to unitholders surged to $642.9 million as listed property securities generated substantial valuation gains.
- 18% net return for A Class units versus 14.3% benchmark
- Profit attributable to unitholders rose to $642.9 million
- Net assets increased to $4.197 billion
- $11.4 million performance fee recognised
- New Z Class launched with 100 units outstanding at year-end
18% Return Beats Hedged Benchmark
Resolution Capital Global Property Securities Fund (ASX:RCAP) delivered an 18% return after fees for its A Class units in the year ended 30 June 2026, ahead of the FTSE EPRA/NAREIT Developed Index (AUD Hedged) Net Total Return Index, which gained 14.3%.
The result was driven less by income than by the revaluation of the portfolio. Net gains on financial instruments at fair value reached $577.1 million, compared with $92.8 million a year earlier, while dividend and distribution income rose to $114.5 million from $98.6 million. Total net investment income climbed to $693.3 million.
Profit Jumps as Portfolio Expands
Profit attributable to unitholders increased to $642.9 million from $160.8 million. The Fund’s listed equity securities, including listed equities and unit trusts, were valued at $4.230 billion at year-end, up from $3.407 billion.
Net assets attributable to unitholders reached $4.197 billion, compared with $3.473 billion a year earlier. Applications totalled $952.2 million during the year, while redemptions were $802.6 million. The numbers point to a larger fund, although market gains were a major contributor to the increase in asset value.
Fees Rise Alongside Outperformance
The stronger result also produced a larger fee bill. Management fees rose to $34.1 million from $28.3 million, and the Fund recognised an $11.4 million performance fee after no performance fee was recorded in the prior year. The fee applies to the A and C classes and is calculated as 20% of outperformance against the hedged benchmark, subject to a positive return.
Distributions paid and payable rose across the established classes: A Class distributions increased to $44.1 million, B Class to $26.6 million and C Class to $8.7 million. The Fund launched a Z Class on 28 May 2026, but it had only 100 units outstanding at 30 June and made no material contribution to the reported financial result.
Global Exposure Remains the Central Risk
Nearly all of the Fund’s investment portfolio consisted of listed securities, leaving reported results highly sensitive to global property markets. The Fund disclosed that a 10% move in equity prices, with other variables unchanged, would have affected net assets by approximately $423 million at year-end.
Currency exposure is hedged through forward foreign exchange contracts, although the scale of those positions increased. Forward contracts had a notional value of $4.098 billion at 30 June, with $104.2 million recorded as derivative liabilities, compared with $11.6 million a year earlier. The Fund says derivatives are used for hedging and portfolio management rather than gearing.
Audit Clears Accounts Without Qualification
PricewaterhouseCoopers issued an unqualified audit opinion and identified the valuation of financial assets at fair value through profit or loss as the key audit matter because of its significance to the Fund’s balance sheet and earnings. The auditor reported no independence breaches and no material subsequent events.
The immediate question is whether the Fund can repeat its benchmark outperformance as the portfolio becomes larger and the comparison base gets tougher. A strong year has lifted assets and distributions, but the next result will show how much of the performance came from recurring income, market conditions and investment selection rather than a single favourable revaluation cycle.
Bottom Line?
The Fund enters the next year with stronger assets and a clear performance record, but its results remain closely tied to global listed property prices and the sustainability of benchmark outperformance.
Questions in the middle?
- Can the Fund maintain its 3.7 percentage-point benchmark advantage after recognising the performance fee?
- How will global REIT valuations affect the next year’s fair-value gains and distributions?
- Will the new Z Class attract meaningful capital beyond its initial 100 units?