Vanguard tops LPT sector review
Thursday, 15 July 2010 12:55pm
Vanguard Investments Australia's locally listed property fund has beaten 18 other funds to be rated 'highly recommended' by Lonsec as the sector struggles with divergent performance results and high staff turnover.
The firm's 2010 Australian Property Securities Funds Sector Review resulted in the Vanguard Property Securities Index fund receiving a highly recommended rating.
The Australian Real Estate Investment Trust (A-REIT) sector posted a total return of more than 37 per cent for the year to May but fund manager performance differed widely.
"There was quite a spread in the range of performance those managers with broader mandates allowing allocation to smaller stocks were the beneficiaries," said Thembi Matabiswana, investment analyst at Lonsec.
"Over a three-year period however, those property securities funds more defensively positioned performed better."
The review also found high staff turnover among A-REIT managers had also been an issue.
"Senior analysts and portfolio managers are steadily leaving the sector in search of prospects elsewhere," said Matabiswana.
"In most cases, those leaving aren't replaced - rather, the role is filled internally. While there are many positives in appointing internally, the biggest detractor is the loss of valuable experience in the A-REIT sector."
Press release
