The Absa Property Equity Fund was recognised as the Best South African Real Estate Fund, for having the highest investment return over three years in the ASISA South African Real Estate General subcategory for the second year in a row yesterday.
Managed by Fayyaz Mottiar, the Absa Property Equity Fund has consistently outperformed its benchmark and it is also the best performing fund over all periods since inception nine years ago.
Building on exceptional performance from last year, where it won two accolades, the fund returned an exceptional 27.6% in 2015 and was the top performer in the property category for unit trusts in South Africa. Over the past three years it returned 25.0% per year, also being consistently placed first in its category.
In a performance similar to last year’s, the Absa Property Equity Fund was recognised as the Best South African Real Estate Fund, for having the highest investment return over three years in the ASISA South African Real Estate General subcategory.
Excluding all funds with a predominately offshore exposure (greater than 80% outside of South Africa), the Absa Property Equity Fund is the second best performing unit trust in the country. “The recipe for our success is keeping our focus on our investment philosophy and process, as well as the underlying fundamentals of the businesses in the listed property space by ignoring the short-term distractions and emotions. This invariably leads to above average returns in the long term,” says Mottiar.
“We look to invest in companies that have smart and capable management and or the ones that own the best located properties. We still see listed property as one of the best places to invest in the medium to long term. We believe listed property still remains the most attractive asset class because of the contractual nature of the income and it’s inherent above inflation rental escalation,” he adds.
The second accolade went to the Absa Multi-Managed Bond Fund, managed by the Absa Multi Management Investment Team of Neville James and Sheetal Rama Nana, which won the Raging Bull Award for the best ASISA South African Interest Bearing Variable Term Sector for the period ending 31 December 2015. This is the second year in a row that this fund is receiving this accolade for consistently delivering excellent performance. This fund is an actively multi-managed fund for investors seeking exposure to the South African fixed interest market, combining the collective expertise of selected fixed interest managers with proven track records.
The fund returned 4.42% in 2015 and was the second best performer in the ASISA South African Interest Bearing Variable Term category for unit trusts in South Africa. Over the past three years it returned 6.49% per year, being consistently placed first in its category.
Armien Tyer, the head of the Investment Cluster at the Barclays Africa Group, says these achievements are a reflection of the inherent talent in the investment team across the Investment Cluster, including Absa Asset Management and Absa Multi Management.
“This is further confirmation that we are more than a bank and this achievement builds on our investment pedigree and several other pockets of excellence. We have now completed the transition to being a fully functional Active Asset Management business with increased depth and breadth in skill, and overall investment experience and diversity. We are now in a much stronger position to serve our clients and to consistently deliver on their diverse needs,” he says.v