TAKE A LONG-TERM PERSPECTIVE

However, the fund is focused on delivering inflation plus four to five percent over a five- to seven-year period, and to achieve this it has to be invested in equities, he says.

Tucker says that, over the past year, the fund raised its allocation to listed property from three to seven percent. Multi-asset funds that are offered to members of retirement funds and that comply with regulation 28 of the Pension Funds Act can have an exposure to listed property of up to 25 percent.

But Tucker says a high exposure to listed property introduces the risk of not being able to get out of those stocks if the manager has to.

He says listed property has experienced good returns over the past 20 years, because there has been a structural change in the bond market as a result of the government’s policy of inflation-targeting.

He says that although property should deliver attractive returns in future, you should not assume that the