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• Atlas High Income Property Fund had a very solid month in December gaining +5.0%, benefiting from a rotation from highly valued tech companies that pay little income into stable dividend paying stocks which populate the Portfolio.
• In December, eight Trusts in the portfolio paid distributions, with the majority posting an increase on the distribution declared in June 2021. While fears around the virus still dominate the news cycle, most company boards have more confidence around profitability amid lockdowns and mobility restrictions as many companies saw minimal changes to profitability during the dark days of 2020.
• The Fund declared a quarterly distribution of $0.036 per unit for the December Quarter, a small increase in September’s distribution. The distribution was paid to investors in early January.  

Go to Monthly Newsletters for a more detailed discussion of the listed property market and the fund’s strategy going into 2022

ASX proves resilient amid US market sell-off

The S&P/ASX 200 Index is just over 2 per cent shy of hitting a record while the Nasdaq Composite has fallen 7 per cent from its peak in mid-November. On Friday, the US unemployment rate fell to 3.9 per cent and monthly wage growth accelerated in December.

Fund managers say inflation, COVID-19 will be important in 2022

One of the biggest challenges for investors in 2022 will be higher interest rates as central banks move to combat rising inflation. Futures markets are pricing in two hikes by the Federal Reserve in 2022 and at least three rate rises by the Reserve Bank of Australia.

• Atlas High Income Property Fund had a steady month in November gaining +1.1%, as global markets were buffeted by the emergence of the Omicron variant of Covid-19 and a slowing Chinese property market.
• Unlike in early 2020, concerns about lockdowns to contain the new Covid-19 did not see panic selling of companies owning hard assets due to more certainty around earnings and the view that real assets provide a hedge against inflation. The Fund is primarily exposed to asset classes that saw minimal to no impact from lockdowns in 2020, which gives us confidence that distributions will be maintained in the unlikely event that the Omicron variant results in further restrictions.

Go to Monthly Newsletters for a more detailed discussion of the listed property market and the fund’s strategy going into 2022

CSL shares dip below $300 as it confirms M&A talks

On Friday, the stock fell $7.63 to $297.69 each – their lowest close since late October. The Swiss drugmaker’s shares shot up more than 20 per cent on the Swiss Stock Exchange overnight forcing Vifor to issue a statement telling investors “it systematically reviews options that can strengthen its market position and/or accelerate the growth of the company both organically and through partnerships and acquisitions”.