NAV on 2021/03/02
|NAV on 2021/03/01
|52 week high on 2020/03/06
|52 week low on 2020/03/25
|Total Expense Ratio on 2020/12/31
|Total Expense Ratio (performance fee) on 2020/12/31
Bridge Fund Managers (Pty) Ltd.
GPR 250 REIT Index TR
Ian joined Grindrod Asset Management as Chief Investment Officer in September 2009. Prior to that, he ran his own consultancy where his clients included Marriott Asset Management, Fortress Asset Managers (part of the Resilient group of companies) and the Property Loan Stock Association of South Africa. Ian was the Investment Director at Marriott Asset Management from 2002 to 2007, having joined the firm as an Investment Analyst in 1996. Ian has been involved in the management of specialist listed property portfolios for the past 15 years.
Richard has over 12 years of investment experience which he gained in both the UK and South Africa. He spent 9 years in London working for global investment manager Schroders Investment Management, and hedge funds Trafalgar Asset Managers and CapeView Capital LLP. There he gained valuable insight into various investment strategies including long-only, event-driven, credit, private equity and long-short equity. He returned to South Africa in 2013 and worked for Atlas Trading (Grindrod) before joining Bridge Fund Managers (formerly Grindrod Asset Management) in 2014.
Bridge Global Property Income Fdr comment - Dec 19
2019 finished on a positive note for global financial markets. The United States and China announced a preliminary trade deal and the Conservative Party in the United Kingdom won a landslide majority in the general election and in so doing secured a mandate to ensure the UK leaves the European Union (Brexit) on 31 January 2020. The US-China trade war has weighed on business sentiment since the middle of 2018 and been a major contributor to the general slowdown in global economic activity throughout 2019. China’s economy was particularly hard-hit by the threat and counter-threat of increased tariffs across a range of products and the first phase of a trade deal, due to be signed on 15 January 2020, is likely to lead to increased business investment and higher levels of global economic growth in 2020.
Prime Minister Boris Johnson’s gamble to call an early election in the UK paid off handsomely as the Conservative Party secured a further 48 seats in parliament, while Jeremy Corbyn’s Labour Party lost 60 seats. The path to Brexit has now been cleared and the UK is expected to leave the European Union as scheduled on 31 January 2020, although a transition period extending to the end of 2020 is envisaged, after which time the real negotiating is expected to start in earnest. The pound strengthened to US$1.35/GBP in the immediate aftermath of the election result but has since drifted back towards US$1.30/GBP.
Against a more favourable economic and political backdrop, global bond yields rose appreciably, with the yield on 10-year US Treasuries rising to 1.92% from 1.77% at the end of November. In Europe, the yield on 10-year German bunds rose 17 basis points. Global bond yields have been rising since the end of August but remain well below the average levels of 2018 as global growth stalled in 2019 on heightened political risk, business investment stalled and central banks turned more dovish to support the global economy.
Global real estate markets continued to struggle in the face of rising bond yields during December. The GPR 250 REIT Index in US dollars declined by 0.7% in December but was still up more than 24% during the year. In 2019, global REITs had their best year since 2012, amid a broad-based rally fuelled by sharply lower government bond yields, tighter corporate credit spreads and an improving earnings outlook relative to other sectors of the market. For REITs, the earnings outlook has not changed much, while other sectors have seen earnings downgrades as global economic growth continued to slow in the face of the US-China trade war. At the same time, sentiment towards mall landlords outside the UK improved and prices started rising again.
Despite the strong recovery in 2019, listed property companies are, on average, trading at discounts to the underlying value of their property portfolios and on forward dividend yields above the yields on longer-dated, investment-grade corporate bonds. Most companies are expected to produce inflation-beating dividend growth over the medium term, while increased levels of corporate activity, particularly in those sectors and markets offering the deepest discounts to net asset value, is expected to drive share price appreciation in the short term. While there are lingering concerns about the impact of technological disruption on certain sectors, like malls and offices, these concerns are, for the most part, adequately reflected in current share prices and valuations.
The Bridge Global Property Income Feeder Fund declined by 5.0% in December as the rand strengthened against the US dollar. The Fund continues to favour investments in high quality Real Estate Investment Trusts (REITs) that are expected to withstand the impact of increased borrowing costs on their profits and dividends when bond yields and official interest rates do start rising. The Fund is well diversified both geographically and by property-type.
The Bridge Global Property Income Feeder Fund is a specialist global property portfolio with the objective of providing investors with high current income and long-term capital appreciation. It achieves this by investing in the Bridge Global Property Income Fund (BGPIF) which is domiciled in Ireland. The BGPIF invests in real estate securities listed on international stock exchanges.
This fund is available to be used within our Tax Free Savings Plan, by virtue of S12T of the Income Tax Act.