19.3% re­turn over three years earns IPD award for Re­silient In­come Fund

Weekend Argus (Saturday Edition) - - PROPERTY -

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).

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