Mariette Warner, manager of the fund, said this total return, which included unit price movement and income distributions from the underlying property portfolios of the 20 property funds it invests in on the JSE's real estate index, was the second highest in the domestic, flexible property unit trust category.

The Old Mutual SA quoted property unit trust was the top fund in this category with a total return of 38,5%. It invests in 16 of the 34 property stocks on the JSE.

Warner said on Friday that she was expecting her fund to record lower total returns of 15% this year due to stable interest rates.

She said any growth would come from increased distributions from the property stocks that the fund invested in.

But Warner said she still expected listed property to outperform cash and bonds this year.

"I expect the larger market-cap (listed property) funds to generate good earnings growth because of the improved fundamentals in the underlying property market and as a result of good asset management within the property portfolios."

Warner said she was expecting "very strong" increases in distributions from some of the listed property funds with smaller market capitalisations, which engage in entrepreneurial activities in the physical and listed property sectors.

She said liquidity in the listed property sector had increased significantly over the past three years because property was a more attractive asset class and the sector had increased in size. The sector also had a wider investor base.

Colin Young, fund manager of the Old Mutual SA quoted property unit trust, said he was expecting a total return of 15% for his fund this year, assuming the interest rate outlook remained constant.

Young, however, said Old Mutual Asset Managers' official view was that the interest rate outlook would be positive over the next three years.