The recent reporting season results showed why this sector (Listed Property Trusts) is an important component of your portfolio. We access this sector by investing in a managed fund called the APN AREIT fund. This fund usually represents about 10% of portfolios.
The recent seasons’ highlights of the sector include:
- The AREIT Index recently outperformed the broader equities market
- The Industrial sector was up 7.8% over the month due to the strong performance of Goodman Group (GMG)
- The Retail sector was up 4.8% with Westfield Group (WDC) (up 6.3%) and Westfield Retail Trust (WRT) (up 2.7%) the two significant drivers over the month.
The goals of this fund are to provide our clients with a high level of income, provide income which has a tax effective component, and ensure that capital growth matches increases in CPI over a 5-7 year time horizon whilst enjoying a lower level of market volatility.