- The Fund posted a gain of +3.6% over the month of November, which was ahead of our expectations in an exceptionally strong month for the Australian Listed Property sector. The derivatives overlay which we use to both enhance income and protect capital will naturally cause performance to lag in very strongly performing months.
- The Fund remains positioned towards Trusts that offer recurring earnings streams from rental income, rather than development profits. After the McGrath profit warning in November (attributed to slowing off the plan apartment sales), we remain convinced that this strategy will outperform as the market gives a higher value to recurring earnings as development profits being to wane.
Go to Monthly Newsletters for a more detailed discussion of the listed property market in November and the fund’s strategy going into 2018.