NAV on 2019/01/15
|NAV on 2019/01/14
|52 week high on 2018/01/16
|52 week low on 2019/01/02
|Total Expense Ratio on 2018/09/30
|Total Expense Ratio (performance fee) on 2018/09/30
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 - Sept 18
The FTSE/JSE SA Listed Property Index (SAPY) provided a -1% total return for the third quarter of 2018. This was worse than the JSE All Bond Index’s +0.8%, better than the FTSE/JSE All Share Index’s -2.2% and lower, but similar to, the general retail sector (-0.5%). Rising bond yields and a local economy now technically in recession took their toll.
Over the past 12 months, the listed property index’s total return has been a dismal -15.7% (against the FTSE/ JSE All Share’s +3.3% and All Bond Index’s +7.1%). Over this period, our fund’s performance after fees was more than 6% higher than its SAPY benchmark. This was primarily because we were very underweight to the Resilient group of companies, as on our analysis they were excessively expensive. Other stock picks also contributed to the fund’s outperformance. The fund will continue to hold meaningful positions in a diversified selection of property shares that we believe offer the most long-term value.
The sector’s yield has increased significantly. The SAPY benchmark has a 9.4% forward dividend yield (this was 6.8% at the start of the year), compared to 9.5% on the SA 10-year bond.
Near-term distribution growth should be broadly around the lower band of recent inflation and the sector offers an attractive yield. Conditions remain difficult, with disappointing GDP growth, cost increases constraining net rental growth and significant over-rentals on renewal in some pockets (especially in offices also faced with significant potential new supply). Malls are facing a tougher environment, a key concern. There is too much retail space in some nodes, sales are weak, trading density is flat and tenants’ profitability is under pressure. An improvement in economic sentiment is required.
Bond yields are the key short-term driver of capital value volatility. Increased foreign exposure continues to change the make-up of the sector.
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.