Metope Property Income Prescient Fund
The Metope Property Income Prescient Fund is a listed property fund with a focus on delivering a high income yield. Through active management and stock selection, the fund aims to provide an income yield higher than that of the FTSE/JSE SA REIT Index, while also delivering growth in income over the medium- to long-term.
The fund’s strategy is to invest in listed property securities that offer a high income yield, derived primarily from rental income which is expected to grow in line with underlying rental escalations. In selecting stocks for inclusion, Metope applies a bottom-up investment process, underpinned by in-depth fundamental research. While the fund aims to generate an income yield in excess of the yield on the SA REIT index, the portfolio is managed in an unconstrained manner, and will take large active positions versus the benchmark.
The diversified portfolio will comprise predominantly South African REIT securities, but may include offshore listed property securities provided that they offer a high yield that is comparable to those of locally listed securities, and provided that the fund is not subject to excessive currency risk that could result in a reduction of the fund’s income yield. In addition, the portfolio may hold up to 20% in other income generating assets such as bonds and corporate debt.
Why choose this fund?
- The fund offers investors a high income yield, with some growth in income derived from the underlying portfolio’s dividend growth
- The fund offers investors access to high-yielding South African listed property securities as well as limited exposure to offshore listed property securities that provide a rand-hedged income yield
- The fund aims to minimise company-specific risk by holding a diversified portfolio of securities to ensure that the income objective is delivered
Who should invest in this fund?
- The fund is suitable for investors with a long term investment horizon (minimum 3-5 years) who require a high income yield that offers growth potential, and are able to withstand some capital volatility
- Investors who draw a pension from or who wish to live off the income generated by their portfolio, and as a result require a high income yield
- Investors that wish to re-invest the high income yield and benefit from compounding returns on the income generated
- Investors in a Tax Free Saving Account who wish to minimise tax payable on REIT income and capital gains over the long term
- Portfolio Manager: Liliane Barnard
- Launch date: 30 October 2019
- Fees (Class A): 1.15% p.a. (ex. VAT)
- Minimum lump sum investment of R1,000 or monthly investment of R250
- Tax Free class available
The Metope Property Income Prescient Fund is administered by Prescient. For more information, visit www.prescient.co.za