SOUTH AFRICAN FUNDS
Need for caution when picking property stock
Nearly 40% of the South African listed property sector is exposed to commercial real estate outside of SA
Fund managers are becoming increasingly circumspect when it comes to stock picking as South African property groups continue to buy real estate offshore despite perceived risks in Europe and the UK. Nearly 40% of the South African listed property sector is exposed to commercial real estate outside of SA and this is not likely to be reduced in the near future. "You need to pick stock by stock nowadays when you invest in property. The idea that you’ll be okay if you buy the FTSE-JSE South African listed property index (Sapy) on its own is gone. Many of the funds on the JSE are investing abroad but in different countries, often those in Europe, and when you buy the Sapy, you buy exposure to numerous markets. "So it’s becoming more important to research firms more deeply before giving them your money," Ivy Asset Management director Chris Segar said. He said fund managers appreciated why so many property investors were looking offshore for opportunities given prolonged uncertainty around...
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