Browsing public site

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.

Unit Price

AS AT 14 Jan 2021

2.6548 NZD

Buy/sell spreads may apply when transacting. There are currently none.

Month End Unit Price

As at 31 Dec 2020

2.6904 NZD

Manager's Comment

Market Commentary

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.

Outlook

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.

Major Investments

As at 31 Dec 2020

Company name Volume
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

Return Comparison

As at 31 Dec 2020

1 Month 3 Months 1 Year 3 Years* Since commenced operation*
*Annualised
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.

Morningstar, are a leading global provider of independent investment research that rank and report on Funds within New Zealand and Australia. View the latest Fund Report for the Listed Property Fund here.

Fund update

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

Risk indicator

Potentially lower returns
Potentially higher returns
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
LOWER RISK
HIGHER RISK

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%
Australasian equities 20.00%
International equities 5.00%
Listed property 70.00%

Things to note

  • Manager: Forsyth Barr Investment Management Limited
  • Date the fund started: 26 June 2008
  • Tax status: Portfolio Investment Fund (PIE)
  • Minimum suggested investment time frame: At least five years
  • Benchmark: None
  • Currency: New Zealand dollars
  • View the Product Disclosure Statement for detailed information about this Fund and Forsyth Barr Investment Funds Scheme.

Fees

Annual fund charges are currently 1.25% p.a. of the value of your investment. This means that we pay management and administration charges along with the Supervisor fee out of this. All fees and charges are quoted exclusive of GST.

Trail commission may be paid to a Financial Adviser responsible for your Investment Funds account. Any trail fee is paid by Forsyth Barr Limited and is not a separate charge on your Investment Funds account.

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.

© 2020 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser.

Get in touch

22 locations around New Zealand

To find out more about our Listed Property Fund, speak to one of our Investment Advisers. They will help you determine the role an Investment Fund can play in helping you achieve your goals.