March Monthly Newsletter Atlas High Income Property Fund

  • The S&P/ASX 200 A-REIT index had a very strong month in March returning +6.2%, a significantly better outcome than the overall ASX200 that gained 0.7%, aided by falling bond yields globally and once again large price gains in the stock prices of the developers.
  • The Atlas High Income Property Fund gained 4.9% in March which was ahead of our expectations given the Fund’s conservative stance and low beta compared to the index. Over the last three months, the Fund has gained +7.3%, which we believe is close to the maximum achievable through a buy-write strategy utilising capital protection.
  • For comparative purposes this month we have compared the returns against RBA cash rate +3% (see table below), as the Fund is primarily managed towards delivering consistent quarterly income with lower volatility to investors, rather than mimicking an index which is increasingly being dominated by trusts with characteristics outside the Fund’s investment strategy.

Go to Monthly Newsletters for a more detailed discussion of the listed property market and the fund’s strategy going into 2019.