MD Andre Stadler says the fund which will invest in property equities listed on the JSE, has been launched in response to the growing investor demand for stability and income which the property sector has come to represent.  “This is reflected partly in the surge in market capitalisation of the property sector in recent years. The sector grew by 33% from R24 billion to R32 billion in 2004.”

Stadler says when strong property fundamentals of limited supply with increased user demand coincide with a positive investor market  characterised by lower interest rates and increased investor demand,  a unique ‘golden moment’ arises.  

“And if this present trend continues, 2005 will be that ‘golden moment.’ Listed property is reasonably priced in the current interest rate environment offering investors income yields in excess of bonds and cash plus the prospect of income growth.”

Stadler says that the fundamentals for non-residential property are continuing to firm and solid distributions can be expected.  “We are expecting income growth of about 5 to 6% from the listed property sector as a whole this year.  Listed property should once again outperform cash and bonds.”

The mCubed Property Equity Fund managed by Catalyst, was the leading performer in the asset allocation flexible property unit trust category in 2004. Total returns of 39,8% were recorded against the sector average of 34,7%.

Unlike other managers, Catalyst Securities does not charge any fees on reinvestment in the Catalyst SA Listed Property Fund.  An investment in the fund attracts an annual management fee of 1% excluding VAT.