Performance as at 30 September 2020
Performance is after the annual fund charge, and before tax and membership fees (if applicable). For more information, see legal information and disclaimers.
What happened this quarter (3 months to 30 September 2020)
- The New Zealand listed property sector continued its recovery in the third quarter, with the index rising 13.4%, comfortably beating the broader NZX 50 and ahead of most global property benchmarks.
- There were broad-based gains in the sector, with all 11 stocks that make up the index ending higher.
- The fund’s holding of Charter Hall Group was of particular benefit. Shares in the company rose more than 25% after a strong FY20 earnings result, which included operating earnings of $322.8 million. Furthermore, the company said its assets under management grew by 33% over the year to more than AU$40 billion.
- Another strong contributor was the fund’s overweight to Stride Property. The property asset manager saw strong gains in its portfolio holdings, which include listed company Investore. Investore is the owner of retail stores that include Countdown and Bunnings, two essential services that remained open through the lockdown periods, outperforming the office and retail market. Over the quarter, Stride rose more than 20%, making it the second best-performing company in the New Zealand listed property index.
- Elsewhere, the fund’s holding of Oceania Healthcare boosted performance, with shares in the retirement village company gaining around 28% over the quarter. The retirement sector was one of the best-performing sectors, with sales rebounding after the early-2020 lockdown period. The company also benefited from the buoyant New Zealand property market.
- Holding back performance was the fund’s underweight position in Goodman Property Trust, which finished the quarter up nearly 20%. The company continued its good run with news it had made a $70 million purchase of properties in Otahuhu, which will increase its footprint in the area.
- Finally, the fund held a small cash balance, which was a minor detractor on performance. As optimism around the economic recovery improved, cash (which acts as a defensive asset) underperformed.
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