VIVIDEND IN­VEST­MENT FUND

Finweek English Edition - - INVESTMENT -

El­e­ment In­vest­ment Man­agers says it is a fan of the JSE-l isted prop­ert y group. Port­fo­lio man­ager Jeleze Hat­tingh ex­plained: “As ‘early bird’ in­vestors, we ini­tially in­vested in VIF as an in­come alternative to cash and bonds. This has proven to be the cor­rect call, with VIF re­turn­ing 13.4% com­pared to cash at 5.7% and bonds at 11.4% over the pe­riod. Look­ing for­ward, we con­tinue to see value in VIF, both from an as­set class di­ver­sif ica­tion view, as well as a rel­a­tive op­por­tu­nity against the rest of the prop­erty sec­tor. VIF’s high for­ward DY of 9.8% com­pares favourably with other i ncome in­stru­ments over the fore­see­able fu­ture (three-year NCDs yield­ing 6.1% and three-year bonds 5.5%), as well as the rest of t he prop­ert y sec­tor (with an av­er­age for­ward DY of 6.8%).”

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