September Newsletter Atlas High Income Property Fund
Hugh Dive
The Atlas High Income Property Fund declined by 0.5% during September, avoiding much of the carnage that saw the wider Listed Property sector fall close to 3%, as the share prices of those trusts with development earnings were sold off aggressively due to concerns that the property cycle has peaked for these trusts.
The benchmark Australian 10-year government bond yield rallied to 1% in September, though this strength in the bond yield has was reversed in early October with the RBA cutting rates to +0.75%. Rising bond rates were attributed to the news that Australia posted its first current account surplus (courtesy of rising iron ore prices) since the Whitlam government in June 1975!
The Fund declared a quarterly distribution of $0.042 per unit, a slight increase over the June quarterly distribution. The distribution will be paid to investors in early October
Go to Monthly Newsletters for a more detailed discussion of the listed property market and the fund’s strategy going into 2020.
