Seek sound fundamentals, listed property investors urged
South African-listed counters with offshore assets, considered rand-hedge shares, rally after S&P downgrade
Listed property investors will be better served picking individual stocks with sound fundamentals over the long term, despite the persistent volatility in capital markets, Catalyst Fund Managers have said. South African listed property stocks with offshore assets such as Capital & Counties, Intu Properties and Echo Polska Properties, which were considered to be rand-hedge stocks, had rallied following the downgrading of SA’s debt by Standard and Poor’s (S&P), while South African-focused counters had been sold off, the group said. "We believe in the long-term, outperformance will be driven by the selection of stocks exhibiting solid property fundamentals. Therefore the decision to select offshore stocks will be driven by a combination of solid property fundamentals, management teams and the need to diversify the portfolios," Catalyst said. Catalyst’s monthly report released on Monday showed that the South African Listed Property index (Sapy) recorded a total rand return of 0.11% for ...
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