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Paraprop back from the cold

Posted On Thursday, 11 November 2004 02:00 Published by eProp Commercial Property News
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The office portfolio of Paramount Property Fund, the Cape-based listed loan stock company, has outperformed all other office portfolios over two years.

Bruce KerswillThe fund, headed by former Norwich Life executives Rodney Squire Howe and Bruce Kerswill, has been debilitated by a deferred debenture structure that has diluted payouts to shareholders.

But the performance of the underlying portfolio indicates that fund income will increase soon. 

Property unit trust Allan Gray Property fund is SA's second-biggest listed fund with a market capitalisation of R3,4m; it is also one of the oldest.

It had the best results from its retail portfolio, after having refurbished or sold off many of its older properties. Retail makes up over 50% of all listed property funds. 

Property unit trust Marriott Property fund was the FM Investment Property Databank (IPD) top industrial fund. 

The FM IPD benchmark and index are drawn from data supplied by 70% of SA's major property funds.

And for the first time they provide a standard against which managers can measure how well their portfolios are doing. It also standardises property valuation, the only means to determine the growth in value of property portfolios. 

The FM has adopted the IPD data to encourage greater transparency among funds and provide a common benchmark for investors. 

The awards, including this year's, have been limited to listed funds.

As the table shows, their total returns in each category were higher than the returns of all the funds, including insurance and pension fund portfolios combined.

This indicates that the returns of the unlisted funds lagged the listed ones. 

Is this a sign that more transparency leads to better results for investors?

The FM thinks so and aims to have all funds taking part in the awards.  

Last modified on Wednesday, 14 May 2014 14:07

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