Listed property: there’s value in variety
Investors aiming at balance in their portfolio should consider including listed property in it, as it offers diversification in a number of ways, writes Johann Barnard
Property ticks all the right boxes as a dependable component in any well-diversified investment portfolio. Valuation growth, annuity income through leases that escalate every year and the defensive nature of property all combine to make this a popular asset. For SA investors, property has more recently assumed the mantle of a potential rand hedge as more and more groups expand their holdings outside SA. According to the SA Reit Association, nearly a third of property assets held in the sector are offshore. Property types — commercial, retail, industrial and residential — are themselves diversified across different sectors of the economy that are, one hopes, not correlated. This type of diversification, through specialisation, can be taken a step further by developing a narrow focus on a market niche.
This approach has been adopted by Equites Property Fund, which has set its eyes on the modern logistics chain. As group chief financial officer Bram Goossens explains, this means ...
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