Real Estate Investor Magazine South Africa April 2015 | Page 50

Listed

Index Tracking

Property

Funds

Index Tracking Property Products
Total
Fund
Type
1 Year 3 Year
Expense
Return* Return*
Ratio**
(% p.a.)
***
(TERs)
***
(% p.a.)

Obtain a full portfolio of the
major property shares
BY MIKE BROWN

M

any investors access listed property shares,
as an asset class, not through buying
individual listed property counters on the
Johannesburg Stock Exchange ( JSE), but through
the purchase of unit trusts or Exchange Traded Funds
(ETFs) that track property indices. The benefit of
buying an index is that the investor obtains a full
portfolio of the major property shares, which ensures
diversification, exposure to the top property companies
and low costs.
The ‘bulking’ of JSE brokerage and trading costs,
which is facilitated through the use of unit trusts/ETFs
often makes this the most cost effective, as well as the
lowest risk option for accessing exposure to property
shares in investment portfolios.
The table below shows the various index tracking
property products (ETFs and unit trusts) available to
the retail market in South Africa; their one and three
year performance records; plus Total Expense Ratios
(TERs).
Many of these Funds have only been in operation
for about a year, so the historic performance record
is limited. However, the ETF property funds appear
to have the advantage when it comes to total return
performance.

48

April 2015 SA Real Estate Investor

Proptrax Ten

ETF

54,28%

25,54%

0,59%

Prudential
Enhanced
SA Property
Tracker

Unit Trust

44,18%

24,40%

0,76%

Proptrax
SAPY

ETF

47,81%

23,97%

0,61%

Stanlib
Property

ETF

47,56%

N/A

0,35%

Satrix
Property
Fund

Unit Trust

43,90%

N/A

0,57%

Sygnia Listed
Property
Fund

Unit Trust

42,84%

N/A

0,45%

*

Total return with distribution reinvested

**

Source: Quarterly Unit Trust Survey (Dec 2014)

***

Profile Data (27/02/2015).

Note:

Historic Investment Returns may not be repeated in future.

RESOURCES
etfSA.co.za
www.reimag.co.za