The JSE’s ever-growing pool of offshore property offerings is making it increasingly difficult for SA investors to pick potential winners. This is particularly so given recent rand volatility, concern about how Brexit will play out and a weak pound, which have played havoc with the share prices of rand-hedge property stocks in recent months. Even New Europe Property Investments (Nepi), arguably one of the JSE’s most lucrative offshore investments in recent years, is down 9% in the year to date. Meanwhile, new listings continue to join the fray, with no fewer than 11 rand-hedge property stocks making their JSE debut over the past 12 months alone. The key question, then, is whether now is the right time to increase exposure to offshore property stocks, given recent share-price weakness and a stronger rand — or is there more pain in the offing?
"We still like offshore property as an investment theme because it offers better fundamentals than the SA property market," says Stanlib ...
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