- January saw continued strength spurred by lower inflation levels and views that 2024 will see falling interest rates domestically and internationally. In December, Australian inflation declined to 3.4%, which was below market expectations and indicated that the RBA’s tightening policies to tame inflation are finally working and that the plateau at the top of the interest rate cycle has been reached.
- The Atlas High Income Property Fund gained by 0.4% in January, continuing the positive moves in November and December. A falling interest rate provides a tailwind for property and infrastructure assets from both falling debt servicing costs and declining pressure on asset valuations.
- Atlas is looking forward to the February profit season, which we expect will show both the resilience of company earnings from the companies held in the Fund and that management will guide to higher distribution through 2024.
Go to Monthly Newsletters for a more detailed discussion of the listed property market and the fund’s strategy going into 2024.