NAV on 2019/11/20
|NAV on 2019/11/19
|52 week high on 2019/02/06
|52 week low on 2019/09/11
|Total Expense Ratio on 2019/09/30
|Total Expense Ratio (performance fee) on 2019/09/30
Prudential Portfolio Managers Unit Trusts Ltd.
South African--Real Estate--General
FTSE/JSE South African Listed Property Index (J253)
Johny, a qualified actuary, has worked in the In vestment industry since 1997. He joined Prudential in 2013 as Portfolio Manager and Equity Analyst, focusing on Insurance and Financial Services companies.
Prudential Enhanced SA Property Tracker - Sep 19
The SARB announced that it would keep interest rates on hold at 6.5% at its September MPC meeting, and its latest quarterly projection model pointed to no interest rate changes through year-end. The growth outlook for 2020 and 2021, however, was revised down from 1.8% to 1.5%, and from 2.0% to 1.8% respectively. Preliminary results showed that GDP expanded 3.1% in the second quarter, well above market consensus of 2.5%. With inflation under control at 4.3% y/y in August, the SARB also lowered its inflation forecast for 2019 to 4.2%, from 4.4% previously. Ratings agency Moody’s announced that it would keep SA’s growth forecast for 2019 at 0.7%, after revising it down from 1.1% in June. Moody’s is currently the only credit-ratings agency that has not downgraded SA to sub-investment grade.
In a string of poor economic data, retail sales dropped from 2.4% y/y in June to 2.0% y/y in July; the Absa Purchasing Managers’ Index declined to 45.7 in August from 52.1 in July (well below the 51.4 market consensus); and manufacturing production contracted 1.1% y/y in July from +3.6% y/y in June. The government’s gross loan debt increased to 58.3% of annual GDP for Q2 2019, surpassing the February 2019 budget’s projection of 56.2% for the full 2019/2020 fiscal year.
SA listed property as measured by the SAPY Index returned 0.3% in September, while the EPRA/NAREIT Global Property Index REIT (US$) posted 2.7%.
Among the top contributors to relative performance for the month were overweight positions in Arrowhead and Stor-Age, and an underweight position in Accelerate Property Fund. Detracting from relative performance were overweight positions in Gemgrow Properties and Hyprop Investments, and an underweight position in Sirius Real Estate Ltd.
This fund aims to provide a total return equal to or better than the benchmark (after fees) while providing long-term capital growth.
The Fund invests in South African listed property instruments and assets in liquid form. No direct investment in physical property may be made. The Fund is managed to a maximum tracking error of 2%.
Who should invest?
Individuals with a medium-to-high risk tolerance requiring medium-to long-term capital and income growth through efficient and cost-effective exposure to the Listed Property sector in South Africa. The recommended investment horizon is 5 years or longer.