Summer Listed Property

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

Fund at a glance

Unit price (as at 31 August 2017): $0.9985

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 objective and strategy

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

Fund returns

 Total since inception1 Month3 Months6 Months
Fund -0.07% 1.45% 1.76% 2.73%

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 Precinct Properties New Zealand Limited 17.71%
2 Kiwi Property Group Limited 17.21%
3 Goodman Property Trust 16.19%
4 Property For Industry Limited 9.38%
5 Vital Healthcare Property Trust 8.85%
6 ANZ Cash Deposit 5.61%
7 Stride Property Group  5.49%
8 Lendlease Group  3.25%
9 Stockland Corporation Limited 2.73%
10 Metlifecare Limited 2.63%

The top 10 investments make up 89.05% of the fund.

Manager's comments

Summer Listed Property delivered a return of 1.45% for August.

The fund has outperformed the property sector, in general, this past year. Positive returns reflect the decision to employ a diversification strategy in 2016 that added investment exposures to retirement property companies and a small number of Australian property vehicles.

The listed property sector delivered a positive return for August. The result was a lower return than the broader equity market, the third consecutive month this has occurred. The sector has now underperformed the New Zealand equity market by approximately 8% this calendar year. We see this as disappointing but it is notable that listed property is now priced at just below net asset backing. The sector’s gross yield, which we calculate as 7.3% is also very attractive, in our view.

August was a busy month for results.

Property For Industry posted a solid result for the first half of 2017 with revenues slightly ahead of forecasts and excellent progress in leasing newly developed properties.

Precinct Properties also reported a good set of numbers this month. Both earnings and distribution numbers were lifted and occupancy is currently 100% which confirms that the commercial market remains in robust health.

Other results to impress included Summerset and Vital Healthcare Properties. The latter reported a record revaluation gain.

A number of the fund’s Australian exposures also reported in August.

Westfield’s result is invariably a complex affair but the number for the first half of the year was broadly in line with our forecasts.

Stockland’s full-year result was also a good one. Full-year profits rose 34.4% with both the residential and retirement divisions posting record results.

Lastly, Goodman Property Trust announced a NZ$107m investment at its Highbrook industrial development project in Auckland. Highbrook has been an excellent investment for Goodman and demand for property within the project’s area remains strong.               

  

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.