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.
The Metope Property Income Prescient Fund is administered by Prescient. For more information, visit www.prescient.co.za