Listed property performance unlikely to continue
High-level investment team turnover in the listed property funds management sector is likely to affect return performance over the next 12 months, according to Zenith Investment Partners.
In its 2013 listed property review, Zenith said it expected the high level of turnover to continue, with a number of managers seeking experienced personnel to fill key vacancies.
Zenith investment analyst Jonathan Baird said the ‘domino effect' was impacting many of the managers rated by the research house.
Despite these issues, the listed property sector, both domestically and abroad, performed strongly during the 12 months to May 2013, with the S&P/ASX 300 Index growing by 30.62 per cent.
According to Baird, the strong returns have increased the number of securities trading above fair value and such performance is unlikely to repeated in the coming year.
Of the 78 investment products rated by Zenith, six were rated ‘highly recommended', 18 ‘recommended' and 13 ‘approved'.
"This year, managers also highlighted the return of real estate investment trusts to more traditional business models as being a key driver of the increased investor confidence in the sector," Baird said.
AUTHOR
Staff Writer
Recommended for you
Platinum Asset Management has put its two closed-end funds under strategic review in a bid to reduce the share price discount to pre-tax NTA and maximise shareholder value.
In the latest Meet the Manager profile, Money Management speaks with Michael Skinner, founder and managing director at Blackwattle Investment Partners.
Perpetual has seen AUM rise 6 per cent in the last quarter but the departure of a longstanding JOHCM fund manager led to outflows of $2.2 billion from his strategy.
Global fixed income fund Bentham Global Opportunities has been added to several major platforms, enabling it to be accessed more easily by financial advisers.
