Property outshines most asset classes, but bonds stand out
Listed property continues to be an attractive investment compared with other asset classes, but it is likely to achieve single-digit total returns this year. On the year to date, the FTSE/JSE SA listed property (SAPY) index has grown about 1.8%, while the all share has climbed 0.53%, both on an index growth basis. Catalyst Fund Managers reported that the SAPY delivered a total return of 8.82% during the first nine months of 2016, strongly outperforming other general equities that returned 4.82%, and also beating cash, which managed 5.42%. But bonds were the stand-out asset class with a 15.05% return. Listed property’s total return including dividends was still an attractive 8% in 2015, but was well short of the strong 26.6% recorded in 2014. Jay Padayatchi, the executive director at Meago Asset Management, said the listed property sector had been affected largely by currency movements in 2016, so those stocks that had achieved returns based on good property fundamentals had "really ...
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