- In February the listed property sector was sold off -3.3%, following global markets that finished down between -3% and -5%.
- The Atlas Fund returned -2.7%, in a month where there were the share prices of most trusts fell regardless of their asset quality or even management upgrading guidance!
- Against the doom and gloom on the share market, the February reporting season revealed that the actual economy is performing quite well. Over the last six months, the trusts held by the Fund delivered an average weighted increase in profits of +5.1% and and increased their distribution by +3.1%.
- Whilst Atlas can’t influence the day to day share prices, what we can control is having the portfolio populated by trusts with secure distributions supported by recurring earnings and are growing ahead of inflation. Over time companies that are able to consistently grow the returns to shareholders will be rewarded by rising share prices, whereas those with unstable earnings inevitably languish.
Go to Monthly Newsletters for a more detailed discussion of the listed property market in February and the fund’s strategy going into 2018.