Forsyth Barr Listed Property Fund
The fund aims to achieve positive long-term returns by investing in selected listed property vehicles, subject to the risks associated with investments in listed property assets.
AS AT 14 Jan 2021
Month End Unit Price
As at 31 Dec 2020
December capped off an eventful year for markets in a positive way with equity markets rising around the world. The strong finish to the year was driven by continued progress in the distribution of vaccines, the signing of a new stimulus relief package in the US, optimism (subsequently misplaced) for travel bubbles opening up, and further monetary and fiscal support from global policy-makers.
The listed property indices finished the year on a high with a return of +13.30% and +8.69% (Australia and New Zealand respectively) for the quarter.
Portfolio Performance and Positioning
The Forsyth Barr Listed Property Fund increased by 3.83% in the month of December (gross of fees and tax), outperforming the reference index by 0.64%. Over the quarter, the fund increased by 10.20%, outperforming the reference index by 1.51%. CYTD, the fund increased by 6.44%, outperforming the reference index by 1.43%.
Key contributors to performance during the quarter under review included overweight positions in Australian names Charter Hall Group, Scentre Group, Mirvac Group, and Lendlease Group, plus modest overweight positions in CDL Investments and Asset Plus. Carrying underweights in New Zealand names, in particular Argosy Property, Kiwi Property, and Property for Industry, cost performance during the quarter.
During the quarter we added Centuria Industrial REIT to the portfolio and participated in the equity raises for Stride Property Group and Vital Healthcare adding to our positions in these names.
We actively monitor the fund’s foreign currency exposures. As at the 31st of December 2020 these exposures represented 11.44% of the value of the fund and were unhedged.
With interest rates likely near the bottom and the possibility of an increase at the long end of the curve, the next year is likely to be tougher for the listed property indices than 2020. Sector and stock selection will become more important. We prefer high quality retail REIT’s (at the right price), supermarket, and healthcare property, along with fund managers (Charter Hall Group and Goodman Group) over expensive industrial and office property, the latter which is likely to suffer from the working from home movement. We will likely look to increase exposure to residential property and tourism property. Broadly speaking the Australian sector trades on more favourable metrics than New Zealand and we are likely to further up weight Australia in the coming months.
As at 31 Dec 2020
|Goodman Property Trust||15.15%|
|Kiwi Property Group Limited||12.92%|
|Precinct Properties New Zealand Limited||11.88%|
|Vital Healthcare Property Trust||9.59%|
|Stride Property Group||9.40%|
|Property For Industry Limited||8.79%|
|Argosy Property Limited||6.75%|
|ANZ transactional bank account||4.54%|
|Investore Property Limited||3.89%|
|Charter Hall Group Limited||2.45%|
|Major holdings as % of total portfolio||85.36%|
|Total portfolio holdings||23|
Performance over time
As at 31 Dec 2020
|1 Month||3 Months||1 Year||3 Years*||Since commenced operation*|
|Net Fund Return||1 Month 3.57%||3 Months 9.71%||1 Year 4.78%||3 Years* 12.15%||Since commenced operation* 8.57%|
|Gross Fund Return||1 Month 3.83%||3 Months 10.20%||1 Year 6.44%||3 Years* 14.13%||Since commenced operation* 10.28%|
|S&P/NZX All Real Estate Gross Index||1 Month 3.19%||3 Months 8.69%||1 Year 5.02%||3 Years* 15.51%||Since commenced operation* 11.10%|
The unit prices shown do not take into account any adjustment for PIE tax.
Net Fund Returns are calculated after deduction of fund charges, trading expenses and accrued tax for a New Zealand resident paying individual tax at the highest Prescribed Investor Rate (28%). Gross Fund Returns are calculated before deduction of taxes and fund charges but after deduction of trading expenses and including imputation credits where applicable. Market index returns do not have any deductions for fund charges, trading expenses or tax.
The S&P/NZX All Real Estate Gross Index (“Index”) is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Forsyth Barr Limited. Copyright © 2015 S&P Dow Jones Indices LLC, a subsidiary of McGraw Hill Financial Inc., and/or its affiliates. All rights reserved. Redistribution, reproduction and/or photocopying in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.
As at 30 September 2020
This document tells you how the Forsyth Barr Listed Property Fund has performed and what fees were charged. The document will help you to compare the fund with other funds.
General Fund Information
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Potentially higher returns
The risk indicator is rated from 1 (low) to 7 (high). The rating reflects how much the value of the relevant fund’s assets goes up and down (volatility). A higher risk generally means higher potential returns over time, but more ups and downs along the way. The risk indicator is based on the returns data for the five years to 30 September 2020. See more information about the risks of investing in the Product Disclosure Statement.
Target investment mix
|Cash and cash equivalents||5.00%|
|New Zealand fixed interest||0.00%|
|International fixed interest||0.00%|
Forsyth Barr Investment Management is the manager of the Investment Funds. The comments on this webpage do not take your personal circumstances into account. Before acting on this information, please contact your Forsyth Barr Authorised Financial Adviser. His or her disclosure statement is available on request and free of charge. Forsyth Barr Limited and its affiliates do not make any representation or warranty (express or implied) that this webpage 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 webpage. This webpage is not intended to be distributed or made available to any person in any jurisdiction where doing so would constitute a breach of any applicable laws or regulations.
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22 locations around New Zealand
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