THE Momentum Property Fund reached the R1bn assets under management mark this week and credits this to it investing in listed property stocks with a high income yield. It said the stocks it invests in had good long-term distribution growth prospects.
The fund has grown assets under management from R500m at the beginning of 2010. At the beginning of this year it had assets under management of R600m.
Momentum Asset Management head of property Nesi Chetty said the fund’s performance was "impressive" when its conservative investment philosophy was considered. "The property team tends to invest in stocks with a high income yield and that also have good growth prospects in distributions in the longer term. The research process and philosophy in property is concentrated on investing in those companies that are located in strong geographic nodes and have the potential to manage their vacancies and improve on rentals."
The fund has roughly 75% of its exposure in large-cap, blue-chip property counters, but has also been selective in investing in new property listings which account for 15% of the fund.
At the end of May, the fund’s holdings included Growthpoint Properties (24.66%), Redefine Properties (13.58%), Capital Property Fund (12.6%), Resilient Property Income Fund (7.4%), Hyprop Investments (6.22%), Vukile Property Fund (5.56%), SA Corporate Real Estate (3.89%), Emira Property Fund (3.56%), Rebosis Property Fund (3.51%) and Fortress Income Fund (3.07%).
Its offshore exposure is through Capital Shopping Centres in the UK and New Europe Property Investments in Romania.
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