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22 Nov 2016 - APN AREIT Fund

By: Australian Fund Monitors
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Report Date21 November 2016
ManagerAPN Funds Management Limited
Fund NameAPN AREIT Fund
StrategyReal Estate
Latest Return DateOctober 2016
Latest Return-7.10%
Latest 6 Months-3.72%
Latest 12 Months8.00%
Latest 24 Months25.91%
Annualised Since Inception16.58%
Inception Date19 January 2009
FUM (millions)AU$1141.8
Fund OverviewEstablished in 2009, the APN AREIT Fund is a property securities fund investing in Australian Securities Exchange ('ASX') listed Australian Real Estate Investment Trusts ('AREITs') and cash/fixed interest. The Fund does not invest in direct property.

The senior management of APN FM all have significant experience in their fields. They include CEO Real Estate Securities, Michael Doble who has 25 years'experience having held various senior roles specialising in real estate valuation, consultancy and funds management. Immediately prior to joining APN in 2003 he was Head of Property at ANZ Funds Management. He is a fellow of the Australian Property Institute and FINSIA as well as holding a Bachelor of Business (Property).

The Fund aims to deliver a competitive yield with lower risk than the market. The underlying stocks are selected based on a highly disciplined investment approach that focuses on the fundamentals and number of valuation approaches. The Fund provides access to a wide spread of property-based revenue streams that are specifically analysed, selected and weighted with the aim of delivering strong and sustainable income returns. The Fund is suited to medium to long term investors seeking a relatively high monthly income and some capital growth over the long term.
Manager CommentsAPN AREIT Fund returned -7.1% in October and 25.91% over the latest 24 months. The long-term performance since inception also remains strong with annual returns of 16.58% p.a. This has been achieved with a lower volatility than that of the S&P/ASX 300 Property Trust Accumulation Index, to give notable Sharpe and Sortino of 1.06 and 1.68 respectively. For the month of October, the Fund's property sector allocation remained mainly unchanged with 62% in the Retail sector, followed by 19% in the Office sector. Cash comprised only 1% of the portfolio. The Fund's top 5 holdings were Scentre Group, Vicinity Centres, Stockland, Charter Hall Retail REIT and Dexus Property Group, with 3 of the holdings above 10% each.
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