13 Apr 2017 - APN Asian REIT Fund

By: Australian Fund Monitors

Report Date	12 April 2017
Manager	APN Funds Management Limited
Fund Name	APN Asian REIT Fund
Strategy	Real Estate
Latest Return Date	March 2017
Latest Return	0.57%
Latest 6 Months	-5.90%
Latest 12 Months	2.61%
Latest 24 Months	3.28%
Annualised Since Inception	13.89%
Inception Date	19 July 2011
FUM (millions)	AU$10.94
Fund Overview	The APN Asian REIT Fund (Fund) is a property securities fund that invests in a quality portfolio of Asian REITs, listed on the securities exchanges of the Asian Region (including, but not limited to, Hong Kong, Singapore, Malaysia, Japan and New Zealand, but excluding Australia), as well as cash and fixed interest investments. Pete Morrissey and Corrine Ng are the Portfolio Managers of the Fund. Morrissey has over 15 years financial markets experience and joined APN in 2006. Previously, he worked at Lonsec and also managed an internationally focused private investment fund as well as spending several years as an analyst in the UK for Nomura, amongst others. He has also completed Masters level academic research papers on both commercial real estate cycles and global property cycles. Ng also has a strong background in property and REITs in Australia, Asia and the North American markets. Prior to joining APN, Ng worked for Aviva Investors (Senior Investment Analyst, North America Real Estate Securities Team) and Goldman Sachs & Co (Vice President, Goldman Sachs Asset Management Real Estate Securities Team) in New York. 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 universe is expected to be dynamic as new IPO's, other corporate actions take place and / or corporate governance improvements at country or REIT level bring new stocks into focus. The Fund focuses on passive rental earnings derived from well managed Asian REITs listed in mature capital markets and will not invest in infrastructure, property development companies or stocks with a 'loose association with property'. 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 an unhedged product. The Fund is suited to medium to long term investors seeking a relatively high income and some capital growth over the long term.
Manager Comments	APN Asian REIT Fund returned +0.57% in March, compared to the Bloomberg Asia REIT Index's return of 1.09%. Since inception, the Fund has an annualised return of 13.89% p.a., with a volatility of 9.38% p.a., to give notable Sharpe and Sortino ratios of 1.16 and 2.05 respectively. The Fund's holding for March remained relatively unchanged from the prior month. The portfolio continued to have significant exposure to Japan (37.7%) and Singapore (30.7%) and over 63% invested in Retail REITs (37.1%) and Office REITs (25.9%). The top five holdings: Gip J-REIT, Ascendas Real Estate Inv Trust, Keppel Dc REIT, Japan Retail Fund Investment, and Prosperity REIT, comprised over 22% of the portfolio, with five holdings above 4% each.
More Information	Fund Profile Manager's Report AFM Research Reports

Fund Monitors Pty Ltd

13 Apr 2017 - APN Asian REIT Fund