Fund Objective

The Fund aims to achieve a total investment return comprising income and long term capital growth.

View on Past Performance

Global listed property markets fell very heavily over the month with global equity markets as concerns rose about the impact of the credit crunch on the world economy. All the major listed property markets were substantially lower. Performance was aided by Hong Kong developer Hang Lung Properties which rebounded strongly from oversold levels.On the negative side, US REITs performed poorly, with Alexandria Real Estate and Simon Property Group suffering as the US economy weakened. We bought CFS Retail Property Trust which is a relatively defensive company with a focus on high quality retail assets in Australia. We sold Goodman Group as there is little positive news on the horizon, and Summit Germany on the weaker economic outlook for Europe.

Future Expectations

Despite recent weakness the long-term fundamentals are positive with underlying property demand rising, driven by the urbanisation of emerging economies. While property fundamentals may continue to soften in the short-term, the sector offers relatively stable cash flows and a reliable yield.

Fund Details