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 with global equity markets as concerns rose about the impact of the credit crunch on the world economy. Asian property markets were led lower by China and Singapore. The Chinese government cut interest rates, announced initiatives in the housing sector and a large infrastructure plan to support economic growth. Performance was aided by Hong Kong developer Hang Lung Properties which rebounded strongly from oversold levels.Australian diversified group Aspen underperformed following an equity raising. Over the month we bought Hong Kong property developer Cheung Kong which was trading at an attractive valuation level. We sold Kenedix (Japan) on concerns about its balance sheet.

Future Expectations

We remain cautious on many Hong Kong REITs, given the generally poor quality of their management and corporate governance. Our strategy remains to invest in those S-REITs with good management track records, an investment grade portfolio and low refinancing risk. In Japan, property fundamentals remain firm despite a slowing economy.

Fund Details