Monthly Newsletter October 2017

  • The Fund posted a small gain of +0.8% over the month of October, trailing the S&P/ASX 200 A-REIT Accumulation index that was dragged upwards by the strong performance of the trusts with property development earnings. Following the McGrath profit warning in the first week of November (attributed to slowing off the plan apartment sales), we are happy with the Fund’s focus on rent collectors rather than property developers.
  • In the first week of October the Fund paid out a distribution to investors of 4.85 cents per unit.
  • In October the Fund bought put protection out till March 2018 that will offset some of the impact of a significant fall over the next five months. In our opinion the market appears to be mispricing downside risk and we will look at add to this protection.

Go to  Monthly Newsletters for a more detailed discussion of the listed property market in October and the fund’s strategy