Property performance unlikely to repeat, says Zenith

property funds management research and ratings cent

1 August 2013
| By Staff |
image
image
expand image

Zenith Investment Partners investment analyst Jonathan Baird has warned investors not to expect a repeat performance from property this year. 

The listed property sector performed strongly over the 12 months to May 2013 both locally and globally. The S&P/ASX300 (A-REIT) Index rose 30.62 per cent and the FTSE Developed Rental Index returned 25.55 per cent, Zenith’s sector report found. 

However, the strong returns experienced over the last 12 months were unlikely to play out over the next 12 months, according to Baird. 

“Many managers have indicated that the sector’s strong returns over the past 12 months have increased the number of securities trading above fair value, and therefore the magnitude of returns over the past 12 months are unlikely to be replicated in the coming year,” he said. 

Baird said investment team turnover continued to plague the sector, with a “domino effect of changes” impacting its rated managers.  

Of 78 property products, Zenith rated six highly whilst 18 gained “recommended” status and 12 were granted an “approved” rating. 

Baird said managers had moved back towards traditional business models - as seen in the return of REITs - which has driven confidence in the sector. 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

18 hours ago

Interesting. Would be good to know the details of the StrategyOne deal....

4 days 23 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 3 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 4 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

3 days 21 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

3 days ago