Lonsec recommends AUI property fund
Research house Lonsec has upgraded its rating on the Australian Unity Property Income Fund to ‘Recommended'.
The new rating is timely according to Australian Unity Real Estate Investment, head of portfolio management, Ryan Banting who said the ongoing low interest rate environment has resulted in investors re-evaluating their income producing investment options.
Lonsec said the ‘Recommended' rating indicated it had a strong conviction the fund can generate risk adjusted returns in line with its objectives and said that over longer time periods the funds displayed strong defensive and low risk characteristics.
Lonsec also stated the fund "has tended to outperform more often in down markets" and Australian Unity Real Estate Investment was "one of a small number of non-institutional unlisted property fund managers that came through the global financial crisis without reputational damage".
"Historically the Fund has displayed lower worst drawdowns, lower levels of volatility and better liquidity than peers. Over seven years to February 2015, the Fund's volatility (as measured by standard deviation) was a low 4.84 per cent p.a. with a worst drawdown of 15.41 per cent," Lonsec said.
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Jason Spits
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