June 20 2020
Commentary
The GPR 250 REIT World Index produced a USD total return of 0.41% for the month ending 31 May 2020, regaining some ground after a dreadful first quarter. The best performing region was Australia which delivered 8.34% in US dollar terms. The worst performing region was Hong Kong, generating a USD total return of -16.72%. Pleasingly, the fund performed extremely well during May, outperforming the benchmark by over 3% in US dollar terms.
Recent portfolio activity included adding exposure to Towers and select Retail and Healthcare REITs. Although secular headwinds remain for retail property owners, we believe the issue appears to be reflected in current share prices and we have narrowed our underweight in the sector. Meanwhile, we have reduced exposure to certain U.S. residential sub-sectors as well as select Industrial REITs.
Performance
The Reitway BCI Global Property Feeder Fund had a ZAR return of -0.68% for the month of May 2020.
Our peers, on average, returned -3.05% while the GPR 250 REIT World Index delivered -3.61%.
Reitway BCI Global Property Feeder Fund vs Peer Group (ZAR) Rolling
1 Year
3 Years
5 Years
8 Years
Reitway BCI Global Property
25.15%
47.90%
73.78%
244.15%
Peer Group Average
5.26%
28.65%
36.35%
162.10%
Excess Return
19.89%
19.25%
37.43%
82.05%
Ranking
1/16
1/15
1/7
1/6
Quartile
1
Outlook
We believe global REITs are well positioned for the challenges ahead seeing as average leverage levels has declined significantly over the last decade. Additionally, the unprecedented global monetary and fiscal support that we’ve seen globally, the news that the spread of the COVID-19 virus is slowing and governments tentatively beginning to open up their economies gives us confidence that conditions will gradually normalize over the medium term.
For more information on any of our funds please contact [email protected] / 082 676 6115