Coronation Property Equity Fund, a fund of funds-type unit trust, focuses solely on the listed property sector.

The decision to cap investment comes amid a flurry of corporate activity in the sector, which is seen as offering value-creating opportunities for investors, particularly small investors.
Fund manager Kirshi Totaram says there are good opportunities in the sector, but warns that a limited supply of quality scrip is available.

'Investors who want to increase their exposure to property may end up investing in subquality companies which do not provide long-term value,' she says.

Coronation is limiting its property equity fund because 'we do not want to compromise our returns by buying into companies simply to meet our mandate'. she says.

The sector has become a popular alternative to bonds as a source of fixed income, says Totaram, with returns over the past three years exceeding 30%.
She says property can be highly illiquid as an asset class, but this problem has been eased by the sector.

The fund of funds-type unit trusts focusing solely on the sector have also increased liquidity.

The Coronation fund has invested in 19 listed property funds and has an exposure to Liberty International, which is a portfolio of UK-based regional shopping centres.