Summer Listed Property

Summer Listed Property fund performance summary as at 31 December 2019.

Fund at a glance

Unit price (as at 31 December 2019): $1.4240

Date the fund started: 19 September 2016

For information on fees, see our Fees page.

For more information on the Summer Listed Property fund, read the latest quarterly fund update and the product disclosure statement

Fund objective and strategy

See the Listed Property page for the Summary of investment objective and strategy.

Fund returns

 Annualised total since inception1 Month3 Months1 Year3 Years
Fund 11.57% 2.63% 0.65% 28.72% 14.87%

Fund returns are calculated net of fund charges, trading expenses and accrued tax for a New Zealand resident individual paying tax at the highest Prescribed Investor Rate (28%). 

Top 10 investments

  Asset name % of fund net assets
1 Kiwi Property Group Limited 19.06%
2 Goodman Property Trust 16.02%
3 Precinct Properties New Zealand Limited 14.84%
4 Property For Industry Limited 8.91%
5 Argosy Property Limited 8.55%
6 ANZ transactional bank account 7.65%
7 Vital Healthcare Property Trust 7.46%
8 Stride Property Group  7.01%
9 Investore Property Limited 4.33%
10 Asset Plus Limited 1.46%

The top 10 investments make up 95.29% of the fund.

Market Commentary

The New Zealand listed property market index that we follow, posted a December quarter return of -0.39%. In the same period, the Summer Listed Property delivered a return of 0.65%, taking the 12-month return to 28.72%.

Portfolio Positioning

Summer Listed Property enjoyed a strong quarter in a relative sense outperforming the index by 0.25%. This out-performance was primarily due to holding out of index exposures in the aged care sector which roared back to life following a recovery in the housing market and takeover speculation.  In addition to our exposures to Arvida Group and Ryman Healthcare we added to our exposure to Metlifecare at the start of October at NZ$4.44 however with a NZ$7 takeover offer received in the last few days of 2019 we are likely to exit this name in the near term. Kiwi Property Group and Investore followed hot on the heels of the Goodman Property capital raise of late September raising their own chunks of capital during the quarter and we suspect there is more of this activity to come. We added one name to the portfolio with the addition of Goodman Group (Australia) in the last few days of 2019. GMG continues to benefit from its differentiated approach focussing on supply constrained markets, growing assets under management, and benefiting from a healthy development pipeline. Management also recently noted more leasing deals are now extending out to 15 years and the portfolio is under rented across all geographies offering further upside in the medium term.

Outlook

The NZ listed property sector remains fully valued in our view, trading at a 27% premium to adjusted net tangible asset value (NTA) and a 3.70% cash yield.  As a comparison, the Australian sector is trading at a 1.6% premium to adjusted NTA (excluding GMG/CHC) and a 4.7% cash yield. In our view, further capital raises are highly likely in New Zealand as companies take advantage of inflated share prices. We continue to look for opportunities outside the NZ listed property index.

We actively manage the fund’s foreign currency exposures. As at 31 December 2019, these exposures represented 1.26% of the value of the fund and were unhedged.

 

This is not a recommendation to buy or sell any financial product and does not take your personal circumstances into account. All opinions reflect our judgement on the date of communication and may change without notice. Past performance is not a reliable guide to future performance. We recommend you take financial advice before making investment decisions. We have prepared this web page in good faith based on information obtained from other sources, but we do not guarantee the accuracy of that information. We do not make any representation or warranty (express or implied) that this web page is accurate, complete, or current and to the maximum extent permitted by law disclaim any liability for loss which may be incurred by any person relying on this web page.