NAV on 2017/06/22
|NAV on 2017/06/21
|52 week high on 2016/07/27
|52 week low on 2016/11/25
|Total Expense Ratio on 2017/03/31
|Total Expense Ratio (performance fee) on 2017/03/31
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 - Dec 15
FTSE/JSE SA Listed Property (SAPY) Index provided a -4.7% total return in the last quarter of 2015, following +6.2% in the third quarter. Over the fourth quarter, the sector underperformed the FTSE/JSE All Share Index (+1.7%) and general retailers (+2.7%), but outperformed the JSE All Bond Index (-6.4%).
The inexplicable removal of the Finance Minister dominated the quarter, where bond yields rose 132 basis points (bps). The SAPY’s yield decreased by 13bps, but this was due to technicalities around index composition. The SAPY was also assisted by its roughly one-third exposure to offshore income.
The SAPY total return was 8% in 2015, while the FTSE/JSE All Share Index delivered +5.1% and the JSE All Bond Index -3.9%. Your fund comfortably outperformed the SAPY. Performance was enhanced by overweight positions in some strong performers, like Capco and RockCastle, and underweight positions in poorer performers, for instance Growthpoint, as well as exploiting corporate action. Underweight positions in Resilient Group companies were the main detractors. The fund will continue to hold meaningful positions in property shares we believe offer the most long-term value.
The SAPY has a 6.9% forward dividend yield (excluding Attacq and Pivotal) compared to 9.5% on the 10-year bond.
Near-term distribution growth should comfortably exceed inflation. Vacancies may still increase in some sectors. A genuine recovery in conditions may take longer than many anticipate, with disappointing GDP growth; cost increases constraining net rental growth; and significant over-rentals on renewal in some pockets (our key concern, especially in offices also faced with significant potential new supply). Large malls remain robust, but oversupply in some nodes and tenant and medium-term consumer health are a concern. Bond yields are the key short-term driver of capital value volatility. A higher cost of capital may become an increasing headwind.
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.