A property fund that’s thriving in the weak rand environment – Finweek, 5 November 2015
The fund invests in a portfolio of real estate companies and funds with the objective to generate a high level of income and secure long-term capital growth. The top nine property holdings of the fund comprised 73% of the fund at the end of September. The fund’s lowest monthly return since inception in June 2009 was -10.8% and the highest monthly return was 8.4%. The fund has returned 261% to investors since inception, compared with 247% of its benchmark.
Fund manager insights
The fund is currently winding down some of its large holdings to make use of new listed property opportunities coming to the market, according to Amanda de Wet, a fund manager at Plexus Wealth, who oversees the fund.
“We’re actually selling down that holding,” De Wet says about the almost 15% exposure to Redefine, which shot up to its current level after Fountainhead was merged with the former (the fund’s policy does not allow it to invest more than 10% in an underlying share). The fund had about 5% of its value invested in Fountainhead.
“We’re quite optimistic about the growth side of Redefine,” she says. “We think there are a number of growth opportunities.”