- Atlas High Income Property Fund had a steady month in October gaining +0.8%, a pleasing outcome in a month that saw markets unchanged from the end of September due to concerns about slowing growth in China, the prospect of rate hikes by several central banks and the impact of supply chain disruptions on retail sales.
- Concerns about inflation in the medium term was the key theme over the month after the release of the September quarter’s Australian inflation which was 3% annualised. The Portfolio is hedged well against rising inflation with rents and toll revenues rising with inflation Indeed, as a legacy of the GFC where many companies struggled to refinance debt, most Trusts in the Portfolio now have long term fixed-rate debt. Rising inflation is likely to see higher profits for several years as revenues grow faster than interest costs.
Go to Monthly Newsletters for a more detailed discussion of the listed property market and the fund’s strategy going into 2022.