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.
Recommended for you
Australian fund managers are actively seeking to launch Cayman versions of their funds to attract offshore flows, with Regal Partners set to launch its latest offering this month.
As private markets gain traction in Australia but only a limited pool of talent is available, three recruiters explore whether fund managers should consider looking overseas to find top talent.
With an explosion of private credit managers appearing in the market, two alternatives experts believe a consolidation is needed to maintain the quality of the sector.
Bentham Asset Management has become the latest fund manager to expand its distribution team as it reports increased interest in its credit strategies.
