Ex­po­sure to a range of sec­tors pro­vides in­come and cap­i­tal growth over time

Money Magazine Australia - - INVESTING MANAGED FUNDS -

The win­ner of this cat­e­gory, the Zurich In­vest­ments Aus­tralian Prop­erty Se­cu­ri­ties Fund, was also last year's win­ner. These funds, which mainly in­vest in listed Aus­tralia real es­tate trusts (A-REITs), have pro­duced rel­a­tively strong 12-month re­turns for in­vestors, well up on the previous 12 months.

The Zurich fund aims to pro­vide ex­po­sure to a range of prop­erty se­cu­ri­ties, in­clud­ing the com­mer­cial, in­dus­trial and re­tail sec­tors. It also seeks to pro­duce cap­i­tal growth and in­come over the medium to long term and out­per­form the bench­mark (S&P/ASX 300 AREIT Ac­cu­mu­la­tion In­dex) over a five-year pe­riod. Dis­tri­bu­tions are paid quar­terly. Its in­vest­ment team aims to iden­tify and in­vest in prop­erty se­cu­ri­ties where their mar­ket prices, in its view, are less than their in­trin­sic value.

The Zurich team con­ducts rig­or­ous in­di­vid­ual stock re­search with the choice of se­cu­ri­ties not lim­ited to those rep­re­sented in the in­dus­try bench­mark.

The fund has a gold rat­ing from Morn­ingstar, mean­ing it's a “best of breed” in its cat­e­gory, and a “highly rec­om­mended” rat­ing from Zenith, mean­ing it's deemed to be a strong in­vest­ment within its as­set class.

The funds were se­lected from those high­est rated by re­search houses Lon­sec, Morn­ingstar, SQM Re­search and Zenith In­vest­ment Part­ners. Each fund had to be open to new in­vest­ment with a min­i­mum ini­tial in­vest­ment of $25,000 or less. Funds were ranked us­ing a points sys­tem based on their rat­ing by each re­search house. Per­for­mance data as at Septem­ber 30, 2018.

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