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Forsyth Barr Listed Property Fund

The fund aims to achieve positive long-term returns by investing in selected listed property vehicles, subject to the risks associated with investments in listed property assets.

Unit Price

AS AT 5 May 2021

2.6670 NZD

The unit prices shown do not take into account any adjustment for PIE tax.
Buy/sell spreads may apply when transacting. There are currently none.

Month End Unit Price

As at 31 Mar 2021

2.6027 NZD

Manager's Comment

Market Commentary

Most equity markets delivered positive returns during the quarter with New Zealand being the exception. Overall the positive market dynamic was helped by better than expected company earnings, increasing confidence in the effectiveness of COVID-19 vaccines, and a strong outlook for global growth due to the substantial level of fiscal stimulus being deployed by policy makers.

New Zealand equities had a positive return in March but still ended down for the quarter. Higher interest rates continued to impact negatively on the defensive dividend stocks. Weakness in large companies such as A2 Milk and the electricity retailers also helped drag the index down over the quarter.

The listed property sector also declined in the March quarter, modestly underperforming the broader New Zealand market, with higher bond yields continuing to weigh on investor sentiment.

Portfolio Performance

The Forsyth Barr Listed Property Fund decreased by -2.84% (gross of fees and tax) in the quarter ending March 2021, outperforming the reference index by 1.24%. This brings the 12 month return to 31.98% (gross of fees and tax), a period which begins just post the COVID-19 market low, outperforming the reference index by 5.66%.

Key contributors to performance during the quarter under review included overweight positions in CDL Investments and Australian names Charter Hall Long WALE REIT, Scentre Group, and takeover tussle target Vitalharvest.  Carrying underweights in New Zealand names, in particular Kiwi Property, and Goodman Property Trust, plus our overweight position in Charter Hall Group in Australia cost performance during the quarter.

Outlook

With upward pressure likely to remain on interest rates (particularly at the long end of the curve), the next year is likely to be tougher for the listed property indices than 2020.  Sector and stock selection will become more important.  We prefer high quality retail REIT’s (at the right price), supermarket, and healthcare property, along with fund managers (Charter Hall Group and Goodman Group), over expensive industrial and office property, which is likely to suffer from the working from home movement.  Broadly speaking the Australian sector trades on more favourable metrics than New Zealand and we are likely to further up weight Australia in the coming months.

We actively manage the fund’s foreign currency exposures. As at 31 March 2021, these exposures represented 14.79% of the value of the fund. After allowing for foreign currency hedges in place, 11.63% of the value of the fund was unhedged and exposed to foreign currency risk.

 

Major Investments

As at 31 Mar 2021

Company name Volume
Goodman Property Trust 15.10%
Kiwi Property Group Limited 13.59%
Precinct Properties New Zealand Limited 10.92%
Stride Property Group 9.03%
Vital Healthcare Property Trust 9.00%
Property For Industry Limited 8.28%
Argosy Property Limited 7.84%
Investore Property Limited 3.54%
Charter Hall Group Limited 2.46%
Charter Hall Long Wale REIT 2.31%
Major holdings as % of total portfolio 82.08%
Total portfolio holdings 28

Performance over time

Return Comparison

As at 31 Mar 2021

1 Month 3 Months 1 Year 3 Years Since commenced operation
Net Fund Return 1 Month 1.37% 3 Months -3.19% 1 Year 29.94% 3 Years 12.58% Since commenced operation 8.12%
Gross Fund Return 1 Month 1.54% 3 Months -2.84% 1 Year 31.98% 3 Years 14.57% Since commenced operation 9.82%
S&P/NZX All Real Estate Gross Index 1 Month 0.49% 3 Months -4.08% 1 Year 26.32% 3 Years 15.37% Since commenced operation 10.52%

The unit prices shown do not take into account any adjustment for PIE tax.

Net Fund Returns are calculated after deduction of fund charges, trading expenses and accrued tax for a New Zealand resident paying individual tax at the highest Prescribed Investor Rate (28%). Gross Fund Returns are calculated before deduction of taxes and fund charges but after deduction of trading expenses and including imputation credits where applicable. Market index returns do not have any deductions for fund charges, trading expenses or tax.

The S&P/NZX All Real Estate Gross Index (“Index”) is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Forsyth Barr Limited. Copyright © 2015 S&P Dow Jones Indices LLC, a subsidiary of McGraw Hill Financial Inc., and/or its affiliates. All rights reserved. Redistribution, reproduction and/or photocopying in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.

Morningstar, are a leading global provider of independent investment research that rank and report on Funds within New Zealand and Australia. View the latest Fund Report for the Listed Property Fund here.

Fund update

As at 31 March 2021

This document tells you how the Forsyth Barr Listed Property Fund has performed and what fees were charged. The document will help you to compare the fund with other funds.

General Fund Information

Risk indicator

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LOWER RISK
HIGHER RISK

The risk indicator is rated from 1 (low) to 7 (high). The rating reflects how much the value of the relevant fund’s assets goes up and down (volatility). A higher risk generally means higher potential returns over time, but more ups and downs along the way. The risk indicator is based on the returns data for the five years to 31 March 2021. See more information about the risks of investing in the Product Disclosure Statement.

 

Target investment mix

Cash and cash equivalents 5.00%
New Zealand fixed interest 0.00%
International fixed interest 0.00%
Australasian equities 20.00%
International equities 5.00%
Listed property 70.00%

Things to note

  • Manager: Forsyth Barr Investment Management Limited
  • Date the fund started: 26 June 2008
  • Tax status: Portfolio Investment Fund (PIE)
  • Minimum suggested investment time frame: At least five years
  • Benchmark: None
  • Currency: New Zealand dollars
  • View the Product Disclosure Statement for detailed information about this Fund and Forsyth Barr Investment Funds Scheme.

Fees

Annual fund charges are currently 1.25% p.a. of the value of your investment. This means that we pay management and administration charges along with the Supervisor fee out of this. All fees and charges are quoted exclusive of GST.

Trail commission may be paid to a Financial Adviser responsible for your Investment Funds account. Any trail fee is paid by Forsyth Barr Limited and is not a separate charge on your Investment Funds account.

Forsyth Barr Investment Management is the manager of the Investment Funds. The comments on this webpage do not take your personal circumstances into account. Before acting on this information, please contact your Forsyth Barr Investment Adviser. Forsyth Barr Limited and its affiliates do not make any representation or warranty (express or implied) that this webpage is accurate, complete, or current and to the maximum extent permitted by law disclaim any liability for loss which may be incurred by any person relying on this webpage. This webpage is not intended to be distributed or made available to any person in any jurisdiction where doing so would constitute a breach of any applicable laws or regulations.

© 2021 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘regulated financial advice’ under New Zealand law has been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. For more information refer to our Financial Services Guide (AU) or Financial Advice Provider Disclosure Statement (NZ) at www.morningstar.com.au/s/fsg.pdf and ww.morningstar.au/s/fapds.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser.
The Morningstar Rating is an assessment of a fund’s past performance – based on both return and risk – which shows how similar investments compare with their competitors. A high rating alone is insufficient basis for an investment decision.

 

Get in touch

23 locations around New Zealand

To find out more about our Listed Property Fund, speak to one of our Investment Advisers. They will help you determine the role an Investment Fund can play in helping you achieve your goals.