OM property fund scoops top award

Posted On Tuesday, 29 March 2005 02:00 Published by eProp Commercial Property News
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The Old Mutual SA Quoted Property Fund, which invests in listed property stocks on behalf of clients, was named the top fund in the flexible property category over one year at Standard & Poor’s fund awards last week.

Colin YoungOld Mutual delivered a return of 38,5% during 2004.

SA Quoted Property Fund portfolio manager Colin Young is pleased with the award as the fund was set up only a year ago. However, Young cautions investors against expecting similar returns from the listed property sector as a whole this year.

He says listed property had delivered phenomenal growth of more than 35% over the past year but advised investors to temper their expectations going forward, saying total returns were expected to be about 15% this year.

"With a likely income yield of just more than 9%, that means capital growth is expected to be much less this year," says Young.

Despite the anticipated slowdown in property fund returns this year, Young says investors should not ignore the sector.

He says investors looking for income can still expect a better income from property than cash and bonds.

"Property shares are still attractive for investors looking for income as long as they are prepared to take the short-term volatility in share prices."

He says the underlying property fundamentals are in the best shape they have been in 20 years and that property developers are having a "field day".

Last modified on Monday, 12 May 2014 13:14

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