A-REITs outperforming equities
Investors are securing high returns through Australian Real Estate Investment Trusts (A-REITs) than through equities, a report reveals.
Data from property funds manager, Folkestone, found that A-REITs provided total returns of 4.9 per cent in October, while investors saw returns of 4.4 per cent from equities.
The report found A-REITs have provided returns of more than 18 per cent for the year, while equities were down by 0.5 per cent.
Folkestone data also noted that commercial A-REITs were the best performing A-REIT sector for the month, up 6.1 per cent.
A-REITs currently trade on a 5 per cent dividend yield, a 2.39 per cent premium to 10-year bonds.
Recommended for you
Natixis Investment Managers has hired a distribution director to specifically focus on the firm’s work with research firms and consultants.
The use of total portfolio approaches by asset allocators is putting pressure on fund managers with outperformance being “no longer sufficient” when it comes to fund development.
With evergreen funds being used by financial advisers for their liquidity benefits, Harbourvest is forecasting they are set to grow by around 20 per cent a year to surpass US$1 trillion by 2029.
Total monthly ETF inflows declined by 28 per cent from highs in November with Vanguard’s $21bn Australian Shares ETF faring worst in outflows.
