Last year was not an easy one for global property fund managers. The average return of funds available in South Africa in Citywire’s global property equity category was -3.5% in rand.
There was, however, a significant divergence in returns. The top-performing fund – the Reitway BCI Global Property feeder fund – was up 17.4%. The worst performer lost -17.4%. That is an extraordinary difference in return of nearly 35.0%, in a category that only has 25 funds.
To a large extent this reflects the divergence in returns of different sectors in the global listed real estate market. Some, like retail and hospitality, performed poorly due to the impacts of the global pandemic. Others, such as industrial real estate and towers, fared well.
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