SQM Research
Ratings Update

 
As part of its annual domestic property securities review, SQM Research has today released the individual ratings of nine Domestic Property funds.
 
All nine funds reviewed maintained the ratings awarded by SQM Research in October 2014. The ratings awarded ranged from 3.75 to 4.50 star rating, reflecting among other things, the experience and stability of the investment teams, the investment process and fund performance.
 
SQM Research has advised, “Australian REITs delivered high double digit returns for the year to June 2015 on the back of a high level of demand and a weight of money from both on and offshore investors.
 
Following the strong sector performance, caution resurfaced in the market with Managers defensively positioning their funds in anticipation for a correction, which materialised in the second half of 2015 due to global macro concerns. This correct anticipation by the rated sector has boosted returns compared to stated benchmarks post 30 June 2015.
 
For the year ahead, the timing of the initial interest rate increase by the US Federal Reserve Bank, the level and speed of subsequent interest rate rises are potential headwinds to the performance of the A-REIT sector.
 
In addition, a potential lurch towards global deflation may create a challenging environment for A-REIT managers going forward.”



For further information:
 
Louis Christopher
Managing Director
SQM Research
Tel: (02) 9220 4666
Email: louis@sqmresearch.com.au
 
 
Pamela Wightley
Investment Analyst
SQM Research
Tel: (02) 9220 4602
Email: pamela@sqmresearch.com.au