NAV on 2017/11/24
|NAV on 2017/11/23
|52 week high on 2017/09/21
|52 week low on 2016/11/25
|Total Expense Ratio on 2017/09/30
|Total Expense Ratio (performance fee) on 2017/09/30
Old Mutual Unit Trust Managers (RF) (Pty) Ltd.
South African--Real Estate--General
FTSE/JSE SA Listed Property Index
Evan joined MacroSolutions in February 2012 as an in-house property portfolio manager.
Prior to this, Evan joined Old Mutual Investment Group South Africa (OMIGSA) on 1 December 2009 as a member of the Equity Research team and was responsible for the portfolio management of all the property funds in research, as well as some analyst responsibilities.
Evan has 17 years of investment experience.
Evan was a rated broker analyst in the property sector at Nedsec for two and a half years. He headed up the fixed income asset class for six years for BoE Private Clients.
Evan was also responsible for listed property portfolios during his time at BoE. Evan also worked at Franklin Templeton NIB Investment and Mawenzi Asset Managers (formerly Brait Asset Managers) as the Head of Fixed Income.
In addition, he worked as a management and strategy consultant for four years.
Old Mutual SA Quoted Property comment - Jun 17
Listed property's (SAPY Index benchmark) total return in the second quarter was +0.9%. This was better than the All Share Index (-0.4%), and a beaten-down general retail sector (-11%) but behind the All Bond Index (+1.5%).
Over the past 12 months, the listed property index's total return has been +2.8% (All Share +1.7% and All Bond +7.9%). The fund outperformed the SAPY benchmark over this period before fees due to share selection. The fund will continue to hold meaningful positions in property shares we believe offer the most long-term value.
Operating conditions remain challenging for property companies and expectations are becoming more realistic. It is difficult to fill space in an environment with little economic growth and excess supply. Despite this, distribution growth remains decent. Funds continue to deploy capital offshore.
The SAPY has a 7.5% forward dividend yield (excluding Attacq) compared to 8.76% on the SA 10-year bond. Stripping out the non-South African inward listed component, the yield is closer to 8%. The sector has de-rated materially compared to bonds.
Near-term distribution growth should exceed inflation and the sector offers an attractive long-term return. Vacancies may increase. Conditions remain difficult with disappointing GDP growth; cost increases constraining net rental growth; and significant over-rentals on renewal in some pockets (a key concern, especially in offices also faced with significant potential new supply). Large malls remain robust but weaker, and there is too much retail space in some nodes; consumer health is a concern and tenants' profitability is under pressure. Bond yields are the key short-term driver of capital value volatility.
The fund aims to remain fully invested at all times to generate sustainable pre-tax income whilst growing the original capital invested. The fund invests in a selection of listed South African commercial and industrial property shares. Income is derived from property shares that offer a secure and an escalating income stream. Capital growth comes from quality shares that show potential for an upward share price movement.