The phasing out of the FTSE/JSE South African Listed Property Index (Sapy) and the creation of three indices have been welcomed by numerous fund managers, whose investment choice has been expanded. The proposed changes will see the launch of the South African Reit index, the All Property index and the Tradable Property index as Sapy is phased out. The Sapy comprises the top 20 liquid property companies by market capitalisation with a primary listing on the JSE. They are now worth about R464bn. The sector itself has a market cap of about R750bn. The Sapy is being changed because it is no longer considered an appropriate benchmark by which to measure the performance of portfolio managers and sub-sectors. Critics say the sector is too diverse to be represented by just one index. Passive fund managers have been seeking better tailored indices, which separate income-paying real estate groups from developers, to better suit the needs of retirement investment. Investors object to a high co...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.