19.3% return over three years earns IPD award for Resilient Income Fund
RESILIENT Property Income Fund has claimed the overall IPD Direct Property Investment Award 2013, at the 11th annual IPD South Africa Property Investment Conference held in Cape Town.
Resilient achieved the highest annualised total return over three years, based on ungeared property data for the funds measured by IPD.
It reported a 19.3 percent total return across its entire property portfolio, compared with an IPD overall benchmark return of 14.7 percent.
The award for retail portfolio performance also went to Resilient. Its portfolio of shopping centres delivered a 19.9 percent total return, substantially outperforming the IPD retail benchmark of 14.6 percent.
This is the fourth time Resilient has received this award. Last year’s winner for industrial property portfolio performance, Vukile Income Fund, again notched up the top returns in this sector, with a 19.5 percent total return compared with the IPD benchmark return of 14.7 percent.
Capital Property Fund recorded the highest returns for office property perform- ance at an 18 percent total return, well above the IPD benchmark of 13.5 percent.
The IPD awards highlight superior fund performance and show the value of investing in commercial property. Calculations were based on annualised results for the three years to the end of December.
Stan Garrun, executive director and head of IPD South Africa, said: “The calculations for the awards use objective financial criteria only, and reflect the underlying value of a property portfolio.”
The overall IPD universe comprises listed and unlisted funds representing 65 percent of all professionally managed real estate in South Africa. IPD covers 72 percent of market capitalisation of the listed property funds on the Johannesburg Stock Exchange. From this year, it will cover South African Real Estate Investment Trusts.
Garrun says the IPD awards focus on property fundamentals and exclude the effects of gearing, fees and other financial interventions that are justifiably reflected in a fund’s overall result, but which may mask the performance of the assets. This gives a fair evalua- tion of the quality of stock, asset selection and management performance.
Pareto Limited received IPD’s data quality award for meeting IPD’s data provision criteria of accuracy, completeness, timing and detail.
“To accurately measure performance, you need disciplined, quality data. This can have a positive impact on a fund’s performance,” Garrun said.
“It supports informed investment decisions. Precise, pertinent data, and transparent information are the foundation of good governance.”
WINNERS: Back row Stan Garrun (executive director IPD), Andrew Teixeira (Capital Property Fund). Front: Marius Muller (Pareto Limited), Ina Lopion (Vukile Property Fund), Andries de Lange (Resilient Property Income Fund).