New property fund builds on Amplify’s growing success

Amplify Investment Partners has added a property fund to its rapidly growing range of high-performing investment options. The Amplify SCI* Property Equity Fund comes with a track record dating back to 2006, as it started its history in Absa Asset Management before moving into Sanlam Investments, and now into Amplify.

The addition of property to Amplify “is the result of our constant appraisal of our products and investors’ requirements,” says Amplify head of distribution, Nico Janse van Rensburg. “We are constantly looking at our solutions set and where we have gaps and had been on the lookout for a property solution.

“We were looking for a fund that is a good fit for us, and this made sense. Importantly, in line with our active mindset, the fund is managed with flexible strategies and makes tactical investments, and its performance record is in line with the high expectations we have of the managers we choose.”

The specialist fund is aimed at investors with a moderate aggressive risk profile, wanting diversification from general equity shares and capital growth over the medium to long term. Morningstar data shows that the fund was ranked second in its peer group over three and five years, and first over 10 years.

The fund’s investment approach has seen it return 11.79% from inception in August 2006 to September 2024 against the FTSE/JSE SA listed property index benchmark of 10.25% and the ASISA real estate average of 8.91%, reflecting consistent outperformance.

Over three years, it has returned 15.88% against FTSE/JSE SA listed property index growth of 15.97% and ASISA real estate average of 13.47%. Over five years, it has returned 7.94% the index benchmark of 5.37% and the ASISA real estate average of 4.77%, while annualised returns over 10 years are 7.39% against the index benchmark of 4.35%.

Tracking the significant rebound in property shares over the last year, the fund has recorded outstanding returns of 50.09% over a year and 30.37% in 2024 (year to date).

Top counters include NEPI Rockcastle, Redefine, Resilient, Fortress, Vukile, Attacq, Lighthouse, Fairvest, Hyprop and Equites.

The fund is managed by Sanlam Investments head of listed property Fayyaz Mottiar, who has managed the fund since 2011. It maintains a core holding of businesses that are consistent performers, while tactically exploiting opportunities around the core, including the use of cash to protect against downside risk and maintain liquidity.

Mottiar uses a pragmatic approach to exploit risks and opportunities without being constrained by indices. He has a highly flexible method to portfolio construction and uses an absolute return mindset to protect on the downside and capture on the upside, and to balance income and growth.

The fund’s investment strategy is broad enough to allow for flexibility and opportunity and uses benchmark criteria to define its investable universe. Its foundation includes indexed stocks and those that could be included if they met size and liquidity requirements, along with cash.

*Sanlam Collective Investments

Disclaimer

AMPLIFY INVESTMENT PARTNERS (PTY) LTD IS AN AUTHORISED FINANCIAL SERVICES PROVIDER (FSP 712).

Sanlam Collective Investments (RF) (Pty) Ltd (“SCI”) is a registered and approved Manager in terms of the Collective Investment Schemes Control Act. Collective investment schemes are generally medium- to long-term investments. Past performance is not necessarily a guide to future performance, and the value of investments/units /unit trusts may go down as well as up. A schedule of fees and charges and maximum commissions is available from the Manager on request. Collective investments are traded at ruling prices and can engage in borrowing and scrip lending. The Manager does not provide any guarantee with respect to either the capital or the return of a portfolio. The manager has the right to close the portfolio to new investors in order to manage it more eKiciently in accordance with its mandate. Income funds derive their income primarily from interest-bearing instruments. The yield is current and is calculated on a daily basis. If the fund holds assets in foreign countries, it could be exposed to the following risks regarding potential constraints on liquidity and the repatriation of funds: macro-economic, political, foreign exchange. The Manager retails full legal responsibility for the co-brand portfolios. Collective investments are calculated on a net asset value basis, which is the total market value of all assets in the portfolio including any income accruals and less any deductible expenses such as audit fees, brokerage and service fees. Forward pricing is used. Performance is based on NAV to NAV calculations with income reinvestments done on the ex-div date. Performance is calculated for the portfolio and the individual investor performance may diKer as a result of initial fees, actual investment date, date of reinvestment and dividend withholding tax. Maximum fund charges include (incl. VAT): Manager initial fee (max.): 0.00%; Manager annual fee (max.): 0.81%; Total Expense Ratio (TER): 1.76%. The Manager retains full legal responsibility of the third-party portfolio. The registered name of the fund is Amplify Sanlam Collective Investment Property Equity Fund.