Download fund performance vs. benchmark since inception

PREFERRED PROPERTY | June 2017
SEGREGATED MANDATE
PROFILE AND OBJECTIVE
FUND PERFORMANCE VS. BENCHMARK SINCE INCEPTION
This portfolio seeks to offer an attractive, growing property
yield and aims to have as many A shares as possible (we are
sensitive to valuations). These are low-risk, property bonds
which usually grow distributions by 5% p.a. The portfolio aims
to deliver a yield in the region of 8%-9%, growing at 5% p.a.
When income is rolled up, this should achieve a compound
double-digit return over a reasonable period.
240.00
220.00
FUND
200.00
180.00
SUITABLE FOR
160.00
This is an attractive alternative for investors who have longterm cash in the bank. The portfolio offers a reasonably lowrisk property return, supported by growing yields which are
reinvested. The portfolio is underpinned by physical assets
and hence the risk of permanent capital loss is low.
BENCHMARK
140.00
120.00
100.00
PERFORMANCE AT 30 JUN 2017
ASSET ALLOCATION AT 30 JUN 2017
TOP HOLDINGS AT 30 JUN 2017
Anchor Property LS
Fund
111.6%
20%
64.9%
Mara Delta
Equites Property
Fund
10.4%
5.5% 3.9%
12-month
Benchmark
6-month
25.7%
8.3%
80%
2.2% 2.7%
-1.3%
Since
inception
124.7%
3-month
Foreign Property
Preferred Property
Greenbay
3.7%
Echo Polska
3.4%
Local Property
FUND MANAGER COMMENTARY AT 30 JUN 2017
The local listed-property market continues to thrash around the zero line
and the fund finished the month down 1.1%.
In early June, the long awaited Moody’s downgrade came, albeit that SA
managed to just hold on to its investment grade rating. Nevertheless, a
negative outlook was maintained meaning that another review is due in
6-12 months. The local currency held up well and actually strengthened,
with some pundits taking the view that this was a reprieve for the rand.
However, the latest incarnation of the Mining Charter (released midmonth) and a shift in sentiment towards emerging market assets saw this
positive move in the rand unwind later in June.
Clear direction was hard to find against this background, but what is
evident is a deteriorating growth environment for local property
companies. Over the last few months the following companies have
reported:
FUND MANAGERS
PETER ARMITAGE
GLEN BAKER
Redefine revised its DPS growth range from 7.5%-8.5% YoY to 7.0%8.0% YoY for FY17.
Dipula revised its DPS growth guidance range down to 5%-6.5% YoY
(previously 6%-7% YoY).
Delta Property Fund forecasts zero YoY DPS growth for FY18 (consensus
prior to the results was for c. 5% YoY growth).
Accelerate Property Fund also announced that due to its investment
programme in the Fourways node, its distribution would not grow in
FY18 and probably not in FY19 either.
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Mara Delta Properties, however, paid a clean out dividend and performed
well in the month under review, while conversely Echo Polska
Properties NV (EPP) fell 5.6% after a share placement.
INCEPTION DATE
July 2012
The fund may use gearing from time to
time.
BENCHMARK
CPI +5%
This portfolio can be structured in a
segregated portfolio or housed in a
structured equity note. The latter
negates dividend withholding tax and a
capital guarantee can be provided.
MINIMUM INVESTMENTS
R1,000,000
Peter is a CA(SA) and has worked in the local
investment industry for 20 years. He ran the
investment teams at Merrill Lynch and
Nedcor Securities and prior to Anchor Capital
was CIO of Investec Wealth & Investment.
www.anchorcapital.co.za
Glen Baker has a B Com Honours degree and has
completed the JSE and Safex exams. He has 25
years of experience in financial markets. In that
time, he has headed up equity derivatives
divisions at major local and international
institutions. He has both equity and fixed income
experience. He was most recently at RMB before
joining Anchor Capital in Feb 2013.
FEE
1.00% p.a. (excl. VAT)
PORTFOLIO VALUE
R22.76 million
TEL: +27 (0) 11 591 0677
EMAIL: [email protected]