Fund Name Changed - Official Announcement14 Oct 2020
The Catalyst SA Property Equity Prescient Fund will change it's name to Catalyst SCI SA Property Equity Fund, effective from 09 October 2020
Management Company switched - Official Announcement14 Oct 2020
The fund switched Management Company from Catalyst Fund Managers (Pty) Ltd. to Sanlam Collective Investments on 09 Oct 2020
Mandate Overview14 Feb 2020
The Catalyst SA Property Equity Prescient Fund is an actively managed fund, which has a total return objective and seeks to offer investors a return in excess of the South African domestic property equity markets. The fund has a medium to longer term investment horizon.
Catalyst SA Property Equity fund comment - Dec 19 - Fund Manager Comment14 Feb 2020
The SA Listed Property Index (SAPY) and the All Property Index (ALPI) recorded total returns of 0.30% and 1.47% respectively for the month ended September 2019, with the historic yield of the SAPY ending the month at 9.77%. The yield-to-maturity (YTM) on the Long-Term South African government bond (RLRS) de-rated by 9bps, ending the month at 8.90% (8.81% - 30 August 2019). On a YTD basis, SA Bonds were the outperformers with returns of 8.44%, followed by SA Equities (7.08%), SA Cash (5.45%) and SA Property (1.34%). The SA Listed Property (SAPY) and the All Property (ALPI) Indices continues to underperform other asset classes on a rolling 12-month period.
A key consideration facing the sector is the requirement to spend the necessary capital expenditure to maintain their respective portfolios and the optimal way in which to fund the expenditure. A potential change to the historical 100% dividend pay-out ratio is being touted as a solution to fund this capital expenditure, especially, in an environment where asset values are likely to remain static. Whilst there are tax implications to consider; should this be overcome, then this will allow the sector to fund its necessary capital expenditure without increasing debt levels or issuing new equity at a discount to net asset value in the current environment. Despite the weak outlook for local property fundamentals & downward revisions to earnings growth over the medium term, should dividends remain intact and growth return over the medium to long term, SA listed real estate remains attractively priced. On average, SA centric companies are trading at forward yields above the long-term South African Government Bond proxy (RLRS).