NAV on 2019/02/18
|NAV on 2019/02/15
|52 week high on 2018/03/19
|52 week low on 2019/01/02
|Total Expense Ratio on 2018/12/31
|Total Expense Ratio (performance fee) on 2018/12/31
Catalyst Fund Managers (Pty) Ltd.
South African--Real Estate--General
FTSE/JSE SA Listed Property index (SAPY) J253T
Catalyst Fund Managers was established in 2001 as a specialist in managing real estate investments. Real estate investment, both South African and global, is our speciality and our passion. It’s what energises us and keeps us motivated. The business was borne out of a firm belief in the distinctive benefits of including this asset class in an investment portfolio. In addition to our specialist expertise and experience, we manage our clients’ money like our own, always considering that there are individual goals, specific needs and hopes behind every investment.
Catalyst SA Property Equity Fund Comment - Mar 18
The SA Listed Property Index (SAPY) recorded a total return of -0.96% for the month of March with the historic yield of the SAPY ending the month at 8.01%. The property sector underperformed bonds (+2.02%), cash (+0.56%) but outperformed equities (-4.18%). On a rolling 12-month basis, the property sector recorded a total return of -7.09% relative to equities (+9.6%), bonds (+16.18%) and cash (+7.41%). The historic yield of the SAPY at month end was 8.01%. The yield-to-maturity (YTM) on the Long- Term South African government bond re-rated by 15 bps, ending the month at 8.18% (8.33% -28 February 2018).
The Fund delivered a gross of fees return of -4.7% for the rolling 12 months, ahead of the benchmark return of -7.08%. The current forward yield of the SAPY is 8.57%, with SA-centric companies trading at higher yields than offshore companies.
While there have been tentative signs that consumer and business confidence has improved following the ANC elections, it may take time before demand and supply dynamics change to positively influence rental growth. South Africa has avoided a credit downgrade and a recent rate cut are supportive of business and consumer confidence.
We expect distribution growth of 8.2% over the next 12 months, driven largely by offshore companies. In the long term, we expect the sector to deliver 13 - 15% total return driven by its core drivers being income yield and capital return from distribution growth.
The Catalyst SA Property Equity Prescient Fund is an actively managed fund, which has a total return objective and seeks to offer investors a return in excess of the South African domestic property equity markets. The fund has a medium to longer term investment horizon.
In order to achieve this investment objective the securities normally to be included in the portfolio will primarily consist of property shares, property loan stock, participatory interests in collective investment schemes in property, financial instruments, assets in liquid form and non-equity securities which are considered consistent with the portfolio's primary objective and that the Act or the Registrar may allow from time to time, all to be acquired at fair market value.
The intention of the fund is to be fully invested in SA real estate securities; however an alternate allocation of up to 40% of the total fund value is permitted.
The minimum cash holding of the fund is subject to CIS restrictions applicable at that time.