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Views Article – Sharenet Wealth

Share Picks, South Africa

Listed Property And Property Unit Trusts: YTD Update

Another quarter came to a close on 30 September 2017. We take a closer look at the third quarter performance of South Africa’s Listed Property sector.

SA listed property index

The third quarter of 2017 was a choppy ride for investors of South African listed property shares, as the graph below depicts. We start by breaking up the underlying months’ performance.

image01

July 2017

The third quarter kicked off with a great first month for South African listed property. The SAPY index gained 3.67% in July but the stage belonged to listed equities. The JSE All-Share index (which does include listed property) romped home with a mouthwatering +6.97% for the month.

August 2017

Another positive month for listed property, where total return came in at 0.76% (the SAPY index was up 0.46%). Although positive, it lagged bonds (a touch over 1% higher) and equities (+2.65%) for the month.

September 2017

The positive-month winning streak came to an end in September, with the SAPY index down 0.61%. The JSE all-share index was worse hit however and finished the month with negative 1.67%.

Year-to-date 2017

The SAPY index is up approximately 2.7% for the year and almost 6% if looking at total returns (inclusive of distributions). The JSE all-share index has gone from 50,654 on the last trading day of December 2016 to 55,580 at the close of the market on Friday, 29 September 2017. In percentage terms, this translates to 9.7%, and if dividends are taken into account the return exceeds 11%, coming close to double the return achieved by South Africa’s top 20 listed property counters.

image01

SA Real Estate General – Unit Trusts

Perhaps your listed property investment of choice is through a specialist property fund. For this reason, I have sifted through the data and filtered for the top ten local property unit trusts in South Africa. The time period considered (in order to line-up as closely as possible with the analysis above) is for the year-to-date 2017 (From 1 January 2017 to 3 October 2017). The top spot goes to ABSA Property Equity A Fund which achieved 18% over the year so far. The worst performing fund according to the Morningstar data over the year-to-date was Oasis Property Equity D Fund, which only managed 0.15%.

image3Source: Morningstar as at 3 October 2017

Global Real Estate General – Unit Trusts

A number of articles have already been penned for SharenetViews readers around global property, and so the following list includes South African domiciled unit trusts that are in invested in worldwide property.  Again, the time period utilised is from 1 January 2017 to 3 October 2017.

STANLIB’s Global Emerging Markets Property Feeder Fund B1 was the star performer, with a 26% return for the period under review, while the last spot went to Bridge Global Property Income Feeder Fund A. It was only able to amass a 0.71% return year-to-date.

image4Source: Morningstar as at 3 October 2017

References:

Sharenet – www.sharenet.co.za

Funds on Friday by Glacier and Morningstar data

cta


mark

Mark Mayer
Investment Specialist at Discovery Invest

Mark graduated with a Business Science Degree from the University of Cape Town in 2007. He then joined Sharenet, during which time he also completed his B.Com Honours through UNISA. Mark has helped to build, launch and manage derivative and share trading brokerage businesses. He is also a JSE Registered Securities Trader, and has worked on the trading desk at Sharenet. After seven-and-a-half years at Sharenet Mark then moved to Reitway Global (a specialist Global Listed Property Fund Manager) where his passion for property was further kindled. Mark currently works for Discovery Invest as an Investment Specialist on their Investec Managed fund offering. He has over ten years of experience in the equity and asset management sector and can be reached at: markm@discovery.co.za

The views and opinions (where expressed) in this article are those of the author and do not necessarily reflect the official policy or position of Discovery Invest.


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