Monthly Newsletter April 2018

  • In April the Fund gained +3.4%, which was ahead of expectations given our lower risk portfolio positioning.
  • After having a poor start to 2018 due to selling based on macroeconomic factors rather than fundamentals, the Listed Property Index rebounded sharply in April led by retail and industrial trusts.
  • The main highlight in April was the quarterly updates provided by the retail landlords. After a weak December quarter, the owners of Australia’s shopping centres reported retail sales growth of between 2-3% for the March Quarter. Whilst apparel sales were weak, this was offset by growth in food catering, cosmetics and personal services. This suggests to us to some success remixing the stores in Australia’s shopping centres.

Go to Monthly Newsletters for a more detailed discussion of the listed property market and the fund’s strategy going into 2018.