The Reitway BCI Global Property Feeder Fund celebrates its ten-year track record this year and has delivered excellent risk-adjusted returns relative to its benchmark and peer group over that time. It ranks 1st of 17 local funds since inception to 29 March 2022, with a net annualised return of 15.28%. This is versus the peer group average of 12.36%.
Globally, out of 148 funds, it ranks 19th (Citywire) with a cumulative return of 118.3% (USD). This fund’s performance brought us our third Raging Bull award earlier this year, where it was recognised as the Best Global Real Estate Fund for a risk adjusted performance over 5 years.
What is the significance of this milestone?
A longer track record gives a comprehensive indication of a fund’s true risk profile and permits investors to evaluate the performance of a fund through a more complete market cycle. Using a longer-term track record enables fund evaluators to assess managerial skill through differing market cycles, and results in an evaluation that should separate luck from skill.
Reitway Global is a boutique fund manager, with a niche strategy and singular focus on one asset class, global listed real estate. Our funds and investment products hold only this asset class. It’s an asset class that has proven that it offers investors a diversified, uncorrelated, income producing investment over the long-term, that delivers hard currency returns. (Funds on Friday July 21; The Benefits of REITs as a portfolio diversifier)
Why is Reitway the Right Way when it comes to global real estate?
We understand that there is a sector for every market condition. While Retail forms part of it, there are 25 sectors and subsectors making up the listed real estate universe globally. Each of these perform differently in different economic environments, and each have their own drivers of growth. As a global fund manager, we are therefore not confined to any sectors or subsectors due to what is available, but instead have access to over 1000 listed companies in 49 countries around the world.
Property sectors such as Residential have seen good growth over the last few years due to constrained supply. This has been driven by the immense demand increases due to affordability throughout economic cycles. There are property sectors that have seen tremendous growth such as Data Centres and Towers (Specialised) as well as Logistics (Industrial) and E-Commerce is largely a reason for this. The COVID-19 pandemic has accelerated this growth dramatically.
We have been researching these sectors for over a decade now, making us pioneers in this space. Sector allocation plays an integral role in creating a diversified portfolio, and through our active portfolio management we can focus on constructing a portfolio that performs well in rising markets as well as markets experiencing stress.
It is our view that the increase of the Foreign Allowance from 30% to 45% provides a great opportunity for South African investors to optimise their portfolios through greater offshore exposure and there are currently good opportunities in the global real estate space, providing attractive entry points. Investors can access more of this resilient asset class thanks to the allowance increase. It continues to deliver performance and diversification through the global economic cycle, and we believe it remains a vital part of optimal portfolio construction.
The Reitway Global suite of global property products offer investors access to these benefits, along with top quartile performance over our 10-year track record.