Summer Listed Property

Summer Listed Property fund performance update as at 31 January 2017. 

Fund at a glance

Unit price (as at 31 January 2017): $0.9613

Date the fund started: 19 September 2016

For information on fees, see our Fees page.

Further information can be found in the product disclosure statement

Fund returns

 Total since inception1 Month3 Months
Fund -3.84% 1.97% 0.24%


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%). 

Fund objective and strategy

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

Manager's comments

The New Zealand listed property sector, on the whole, delivered positive returns over January.

Key performers within the sector were Stride Property Limited, Goodman Property Trust and Kiwi Property Group.

Summer Listed Property posted a return of 1.97% for the month.

News flow this month was relatively limited.  However, it was pleasing to note the rebound in the sector after recent weakness.

We attribute much of the recent sell-off in listed property shares as inspired by investors reducing exposures to interest rate sensitive sectors such as listed property.

In stock news, NPT Limited has advised that shareholder and suitor Augusta has terminated court proceedings against the company. Augusta’s legal challenge reflected a disagreement regarding the timing of a shareholder meeting to consider a number of resolutions proposed by Augusta. Despite the truce the standoff is yet to be permanently resolved, in our opinion.

The fund continues to hold a very small exposure to NPT Limited stock.

In other news, Stride Property Limited has been positively re-rated by a number of broker analysts. This is to be welcomed as the stock price has fallen by approximately 18% since the middle of 2016. However, recent events have not been helpful; the company was rocked by the unexpected departure of its CEO in December.

Looking ahead to the forthcoming quarter, we believe the most important driver of the performance of the listed property sector, in general, will be interest rates. Our expectations are that global interest rates will continue to rise, led by a series of official interest rate hikes by regulators in the United States.  In turn, we see this as likely to put pressure on the returns available from the listed property sector. However, we are quick to counter that, in our assessment, the sector continues to offer very respectable dividends, a positive feature that we forecast as unlikely to change.

 

 

 

For more information on the Summer Listed Property fund, read the latest quarterly fund update.

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.