SA Listed Property Index recorded a positive return of 6.84% in October 2014

Posted On Sunday, 23 November 2014 15:14 Published by
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The SA Listed Property Index (J253) recorded a positive return of 6.84% in October 2014

 The yield to maturity (YTM) on the Long Term Government Bond Index ended the month at 7.92% (8.22 % - 30 September 2014). The SA listed property historic yield ended the month at 6.69% (6.83% - 30 September 2014).

The SA listed property sector historic rolled yield was trading at a premium spread of 1.23% to the Long term Government Bond yield to maturity at 31 October 2014 (vs. 1.39% at the end of September 2014).

SA Listed property recorded the highest total return (6.84%) of the four traditional asset classes in October 2014. SA Bonds (3.41%) and SA Cash (- 1.01%) were the next best performing asset classes for the month.

For the last 12 months SA Listed Property overtook SA Equities as the asset class that has recorded the highest total return (19.38%), followed by SA Equities (10.58%), SA Bonds (8.98%) and SA Cash (5.73%). A potential new listing in the listed property sector is Pivotal Property Fund, which is forecast to list in the first week of December.  

The company is primarily focused on retail and office assets with the majority located in Gauteng. Property fundamentals remain challenging in the direct real estate environment.

Capital markets remain volatile and are expected to remain as such with the Eurozone battling the threat of deflation, the Bank of Japan accelerating its stimulus program and the recent end of quantitative easing by the US Federal Reserve.

The UBS Global Investors Index recorded a net total USD return of 7.35% in October. The best performing listed real estate market was the US and Canada, which recorded a net total USD return of 10.51%. Asia ex Australia recorded the lowest net total USD return for October of 1.92%. Year to date, the UBS Global Investors Index has recorded a net total USD return of 18.47%. The SA Listed Property Index (J253) recorded a positive return of 6.84% (in Rands) for the month

Source: Catalyst Fund Managers 

Last modified on Sunday, 23 November 2014 16:48

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