Time for property investors to diversify once again
Property investors climb back into rand hedge stocks amid SA’s uncertain economic and political outlook
While the worst performers among the JSE’s 50-odd property stocks in the first quarter were still dominated by rand hedge counters, analysts expect the trend to reverse over the next few months. They feel that jittery SA investors will seek to increase exposure to real estate counters that generate 100% of their earnings in dollars, pounds or euros. Most property fund managers have, in recent weeks, already sold off some of their local holdings on the back of SA’s credit ratings downgrade and uncertain economic and political climate. The SA listed property index is down about 5% from its early March highs. Keillen Ndlovu, head of listed property funds at Stanlib, says they have selectively sold off local stocks and invested the proceeds in rand hedge counters. However, Ndlovu emphasises that the call to gradually increase Stanlib’s offshore exposure is based on fundamentals and valuations and not on currency speculation or movements. He refers to the fact that a number of offshore p...
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