“investment in offshore property portfolios” – stanlib
TRANSCRIPT
Global Listed Property Overview
Keillen NdlovuHead of Listed Property Funds
Senate ConferenceMarch 2013
Ndabezinhle Mkhize
Property AnalystLocal Focus
BSc (Actuarial Science) CAIA CFA
Riaan Gerber
Property AnalystOffshore Focus
B Compt (Hons)Property Development
Programme CA(SA) 8 years
asset management experience
(6 years listed property)(2 years with STANLIB)
5 yearsasset management
experience(5 years listed property)(5 years with STANLIB)
The STANLIB Listed Property Team
3
Keillen Ndlovu
Head: Listed Property Funds
Portfolio Manager
BCom(Hons) FinanceProperty Development
ProgrammeCAIB(SA)
8 yearsasset management
experience(8 years listed property)(8 years with STANLIB)
Craig Smith
Property AnalystLocal Focus
BCom (Hons) Finance BSc (Hons) Property Studies
CFAPassed CAIA Level 1 exams
4 years physical property
experience(1.5 years listed property)(1.5 years with STANLIB)
Stanlib Global Property Fund● Objective
● The Fund invests in the global property market comprising of both developed and emerging territories.
● To provide superior long term investment performance based on sound fundamental research.
● Portfolio Characteristics
● The Fund aims to outperform the UBS Global Real Estate Investors Index
● Manager selects stocks from the bottom up rather than attempting to take big regional bets.
● The Fund has a very strong bias toward investors rather than developers.
● Investment Style
● Involves selecting companies that generate above average growth in their rental streams
● We invest in companies that are trading at reasonable values relative to their growth prospects.
● We focus on defensive attributes such as balance sheet strength, tenant stability and core rental earnings.
● Target Market
● Investors that seek a diversified portfolio of global property stocks that aims to diversify exposure away from the South African listed property market
● Investors that need to add diversity to their offshore cash, equities and/or bond exposure.
● Investors that need to add diversity to currency exposure
3
We do stock picking in-house but we outsource most of the research
4
UBS MacQuarie
Credit Suisse Morgan Stanley
JP Morgan Merill Lynch
Morningstar Deutsche Bank
CB Richard Ellis Jones Lang La Salle
Monthly or quarterly conference calls Ad hoc conference calls
Conversations Email Bloomberg chats
Analysts visiting us at our offices One-on-one meetings
Property markets reports Daily reports Weekly reports Monthly reports
Increased appetite for STANLIB’s offshore listed property offering
5
Source: I-Net & STANLIB
The STANLIB Global Property Feeder Fund has grown to R790m making it the biggest offshore property fund in South Africa
STANLIB Global Property offering – managed in-house - a top performer
● STANLIB Global Property Fund (underlying fund – US Dollar denominated)
● Ranked 2nd in the world over 2 years as at 31 December 2012 (in USD)
● STANLIB Global Property Feeder Fund (Rand denominated)
● Winner of the Morningstar Award
● Best Risk-Adjusted Return Over 1 and 3 years to Dec 2011
● South African ranking(in ZAR) – Jan 2013
● 1st over 1 year out of 6 funds
● 1st over 3 years out of 5 funds
● 1st over 5 years out of 3 funds
6
Source: Morningstar & FundsData
NB: We do not aim for this. It’s an outcome of our investment philosophy and process.
STANLIB Global Property Fund gross total returns to 31 December 2012 - USD
1 Month
(%)
3 Month
(%)
6 Month
(%)
1 Year(%)
3 Year(%)
Since Inception
Sept 2009*
(%)STANLIB Global Property Fund 3.25 4.67 9.97 26.79 16.13 16.60
Benchmark :UBS Global Investors 2.85 4.58 8.86 24.93 15.55 15.84
Outperformance 0.40 0.08 1.11 1.86 0.59 0.76
*annualised Official STANLIB takeover July 2009 Fully invested Sept 2009 Source: STANLIB Performance
STANLIB Global Property Fund gross total returns to 31 December 2012 ZAR
*annualised Official STANLIB takeover July 2009 Fully invested Sept 2009 Source: STANLIB Performance
1 Month
(%)
3 Month
(%)
6 Month
(%)
1 Year(%)
3 Year(%)
Since Inception
Sept 2009*
(%)
STANLIB Global Property Fund -1.55 7.03 13.85 32.85 21.68 21.05Benchmark :
UBS Global Investors -1.93 6.94 1.70 30.90 21.06 20.26
Outperformance 0.38 0.08 1.15 1.95 0.61 0.79
Our benchmark has achieved the highest return with the lowest risk
9
Source: UBS – Data from 1990 to 2012
16% 18% 20% 22% 24% 26% 28%0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
Risk Per Annum
Tota
l Ret
urn
Per A
nnum
STANLIB Global Property Fund Benchmark
STANLIB Global Property Fund exposure by region
Source: STANLIB Research Dec 2012Singapore retail, Suntec City Mall
May 2009 site visit
54.7%
10.3%
5.7%
10.3%
3.7% 5.6%
4.0%
5.6%
Portfolio by Region
North AmericaEuropeUKOceaniaJapanHong KongSingaporecash
STANLIB Global Property Fund exposure by sector
Source: UBS, Bloomberg Dec 2012
11
17.3%
37.1%
7.2%
11.1%
20.2%
1.6%
5.6%
Portfolio by Sector
officeretailindustrialsresidentialdiversifiedhotelscash
HOSPITALS
PRISONS
12
Source: UBS – May 2002 to Jan 2012
The retail sector has provided the best returns with the lowest risk
13% 15% 17% 19% 21% 23% 25% 27% 29% 31% 33%0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Risk Per Annum
Ret
urn
Per A
nnum
Top 10 Overweight Positions Relative
American Campus Communities 0.72%
Westfield Retail Trust 0.73%
Brookfield Office Properties 0.75%
Can Real Estate Invest Trust 0.78%
Can Apartment Prop Real Estate 0.82%
Primaris Retail Real Estate 0.89%
Simon Property Group Inc 1.02%
Tanger Factory Outlet Center 1.06%
Growthpoint Properties Austr 1.60%
New Europe Property Invest 3.37%
11.72%
Top 10 Holdings Portfolio %
Westfield Group 2.0%
Wharf Holdings Ltd 2.0%
Ventas Inc 2.0%
Equity Residential 2.1%
Boston Properties Inc 2.2%
Prologis Inc 2.5%
Unibail-Rodamco Se 2.6%
Public Storage 3.0%
New Europe Property Invest 3.4%
Simon Property Group Inc 7.1%
28.8%
STANLIB Global Property Fund Current Holdings
13
Source: STANLIB Research as at Dec 2012
Imagination is a poor substitute for experience Havelock Ellis
Some of our many site visits
NB: All photos taken by the STANLIB Listed Property team
15
Shopping JK Iguatemi, Sao Paulo – Brazil’s most beautiful shopping centre
Owned by Iguatemi Empresa de Shopping Centers one of our holdings
July 2012
16
Norte Shopping, Rio de Janeiro, Brazil – Low income centre – BR Malls
Source: STANLIB Research July 2012
USA – New York site visits – June 2012
17
Source: STANLIB Research June 2012
USA – New York Site Visits
18
Source: STANLIB Research June 2012
London Jan 2012 site visits - Westfield Stratford City – Westfield Group
19
Opened in September 2011 and cost £1.45bn (R17.5bn) to build 190,000m²- the largest shopping centre in Europe (Canal Walk in Cape Town is 150,000m²) Average lease length is 10 years Anchored by John Lewis (24,000m²), Marks & Spencer (20,000m²), Waitrose (3,200m²) & 6,500m² casino
(UK’s largest) 17 cinemas – all with 3D screens Vacancy of 6% - looks to be fully let before Olympic Games 70% of the visitors to the Olympics will pass through Westfield Stratford 58 trains per hour connect Stratford and Central London Source: STANLIB Research January
2012
Westfield White City – London – Westfield Group - January 2013
20
• Opened in October 2008 and cost circa £1.6bn (R22bn) to build• 150,000m² in size placing it at a similar size to Canal Walk in Cape Town• 255 stores• Anchored by Debenhams, M&S, Waitrose (3,200m²)• The project took five years to build• Shop front floor to ceiling height on upper level is double volume
Source: Westfield, Stanlib Research
Source: STANLIB Research Jan 2013
Canary Wharf, London - January 2012 & 2013
21
• Owned by Canary Wharf plc• Canary Wharf precinct commenced in the mid to late 1980’s• precinct now comprises approx 1.5m m² of office and retail space• Working population in excess of 105 000 people• Occupiers include Thomson reuters, Ogilvy, McGraw-Hill, BP, Shell, Chevron, Total, Clifford Chance,
Allen and Overy, HSBC, Barclays, Citi, Morgan Stanley, Credit Suisse, BNY Mellon, BOA Merrill Lynch, KPMG, Fitch, Moodys, Standard & Poors, Mastercard, FSA, JP Morgan)
• The Cross rail line will link in to Canary Wharf and is expected to open in 2018
Photo by Craig Smith Photo by Craig Smith
Source: Songbird Estates, Stanlib Research
Source: STANLIB Research Jan 2013
Hong Kong – One of the most densely populated cities
22
Source: STANLIB Research January 2012
No wonder why there’s queues at shopping centres in Hong Kong
23
Normal trading day. No specials.
Harbour City – Hong Kong’s largest mall – 177,000m²
Source: STANLIB Research January 2012
Hong Kong site visit - Langham Place Mall – Champion REIT
24
100% occupied Footcount up 5.2% to 8.5m visitors per month – management looking to improve it! Turnover up 24% year on year Rental growth up 20% over expiring rents
No weakness or slowdown expected in occupancies or rents
Dividend yield 6.2%
Gearing 26% Cost of debt 1.1%
Source: STANLIB Research January 2012
Romanian towns and cities visited by STANLIB in 2011
25
Areas where NEPI is exposed to
The new Romania – upmarket shopping centres - NEPI
26
Promenada Mall , Braila - New Europe Property Investments (NEPI)
Source: STANLIB Research May 2011
The new Romania – NEPI - modern office buildings with multinational tenants
27
Floreasca 169, BucharestCity Business Centre, Timisoara
Source: STANLIB Research
Singapore site visits – August 2011 – Strong fundamentals across all sectors
28
New CBD – letting very well. Taken up by banks
Old CBD – holding up despite increase in supply
New shopping centre on Orchard Road – fully let
No material impact on existing retail and hotels
Marina Bay Sands
Singapore site visits – August 2011- Strong fundamentals across all sectors
29
Hotel
Retail
Retail
Retail – first H&M store in Singapore
Westfield Retail Trust, Australia - October 2011- Management breakfast
● A$9.3bn market capitalisation (R85bn)
● Owns malls in Australia and New Zealand
● Less than 2% of rent linked to sales turnover
● 99.5% of portfolio leased i.e. 0.5% vacancy
● Low gearing of 20%
30
Westfield Sydney, Sydney CBD, Australia
STANLIB offshore conferences, management meetings & site visits in 2012
● Hong Kong – January
● UK - January
● US – June
● UK - June
● Romania – June
● Brazil – July
● Singapore – August
31
Offshore conferences, mgnt meetings and site visits planned* for 2013 & 2014
● UK/France
● Romania/Turkey
● Philippines/Malaysia/Indonesia
● China/Hong Kong
● Australia/New Zealand
● USA/Canada
● Germany/Switzerland
● Japan/Singapore
32
* May change
Physical property fundamentals
Global Prime Retail – Rental market is looking good
34
Source: Jones Lang LaSalle Q1 Report 2013
Source: CB Richard Ellis Q4 Report 2012 & STANLIB conversions using € exchange rate of
11.8
Market R/m² per monthHong Kong 34 803New York 23 847London 9 044Paris 8 673Sydney 8 151Tokyo 7 828Zurich 6 846Melbourne 6 815Moscow 5 930Beijing 5 313
Top 10 Prime Retail Rents in the World
SA Listed Property (ZAR): 33% above 2007 peaks
Global Listed Property(USD): 30% below 2007 peaks
Global Listed Property Prices are 30% below the peak achieved in 2007
35
6/2/2
004
10/27/2
004
3/23/2
005
8/17/2
005
1/11/2
006
6/7/2
006
11/1/2
006
3/28/2
007
8/22/2
007
1/16/2
008
6/11/2
008
11/5/2
008
4/1/2
009
8/26/2
009
1/20/2
010
6/16/2
010
11/10/2
010
4/6/2
011
8/31/2
011
1/25/2
012
6/20/2
012
11/14/2
0120
100
200
300
400
500
600
SA Listed Property Index
-37%
6/2/2
004
10/20/2
004
3/9/2
005
7/27/2
005
12/14/2
005
5/3/2
006
9/20/2
006
2/7/2
007
6/27/2
007
11/14/2
007
4/2/2
008
8/20/2
008
1/7/2
009
5/27/2
009
10/14/2
009
3/3/2
010
7/21/2
010
12/8/2
010
4/27/2
011
9/14/2
011
2/1/2
012
6/20/2
012
11/7/2
0120
500
1000
1500
2000
2500
3000
3500
UBS Global Real Estate Investors Index
Source: Bloomberg Feb 2013
+33%-30%
It’s a similar story with, for example, the MSCI World Real Estate Index and the S&P Global REIT Index
-76%
SA Listed Property (ZAR): 33% above 2007 peaks
Global Listed Property(USD): 30% below 2007 peaks
Global Listed Property Prices are 30% below the peak achieved in 2007
36
6/2/2
004
10/27/2
004
3/23/2
005
8/17/2
005
1/11/2
006
6/7/2
006
11/1/2
006
3/28/2
007
8/22/2
007
1/16/2
008
6/11/2
008
11/5/2
008
4/1/2
009
8/26/2
009
1/20/2
010
6/16/2
010
11/10/2
010
4/6/2
011
8/31/2
011
1/25/2
012
6/20/2
012
11/14/2
0120
100
200
300
400
500
600
SA Listed Property Index
-37%
6/2/2
004
10/20/2
004
3/9/2
005
7/27/2
005
12/14/2
005
5/3/2
006
9/20/2
006
2/7/2
007
6/27/2
007
11/14/2
007
4/2/2
008
8/20/2
008
1/7/2
009
5/27/2
009
10/14/2
009
3/3/2
010
7/21/2
010
12/8/2
010
4/27/2
011
9/14/2
011
2/1/2
012
6/20/2
012
11/7/2
0120
500
1000
1500
2000
2500
3000
3500
UBS Global Real Estate Investors Index
Source: Bloomberg Feb 2013
+33%-30%
It’s a similar story with, for example, the MSCI World Real Estate Index and the S&P Global REIT Index
-76%
Global Prime Office – Rental market is holding up
37
Source: Jones Lang LaSalle Q1 Report 2013
Source: CB Richard Ellis Q4 Report 2012
The Global Office Market Rent Cycle
38
Source: CB Richard Ellis 2012STANLIB conversions using a USD exchange rate of 8.8
STANLIB view: Johannesburg and Cape Town fall under “Rental Decline Slowing”
Markets R/m² per month
Hong Kong 1943
New York 1734
London 1557
Paris 1459
Sydney 1446
Tokyo 1417
Zurich 1374
Melbourne 1364
Moscow 1040
Beijing 1026
Top 10 Prime Office Rents in the World
FYI – Johannesburg is R175/m² per month and does not feature in the top 50 office markets
Limited supply of global office space – Demand exceeds supply
39
Source: CB Richard Ellis Q3 2012
Manhattan offices, New York USA site visit May 2011
Regional demand and supply as a % of existing stock
Global demand and supply as a % of existing stock
Global office vacancies are improving
40
Hong Kong CentralApril 2009 site visit
Source: CB Richard Ellis Q3 2012
Shinjuku office node, TokyoDecember 2010 site visits
Regional Vacancies
Global office rentals – a generally positive trend
41
Source: Jones Lang la Salle Q1 2013Marina Bay, SingaporeSeptember 2010 site visit
Projected Value Changes in 2013
Prime Industrial Warehousing – Rental growth is fairly strong
42
Source: Jones Lang LaSalle Q1 Report 2013
Source: CB Richard Ellis Q4 Report 2012STANLIB conversions using USD exchange rate
of 8.8
Top 10 Prime Industrial Rents in the World
Markets R/m² per monthTokyo 168London 160Singapore 139Stockholm 113Hong Kong 103 Sydney 99Sao Paulo 99Brisbane 93Paris 87Perth 87
Source: CB Richard Ellis Q3 2012
Valuations - Why investing in Global Listed Property still makes
sense
SA Listed Property (ZAR): 33% above 2007 peaks
Global Listed Property(USD): 30% below 2007 peaks
Global Listed Property Prices are 30% below the peak achieved in 2007
44
6/2/2
004
10/27/2
004
3/23/2
005
8/17/2
005
1/11/2
006
6/7/2
006
11/1/2
006
3/28/2
007
8/22/2
007
1/16/2
008
6/11/2
008
11/5/2
008
4/1/2
009
8/26/2
009
1/20/2
010
6/16/2
010
11/10/2
010
4/6/2
011
8/31/2
011
1/25/2
012
6/20/2
012
11/14/2
0120
100
200
300
400
500
600
SA Listed Property Index
-37%
6/2/2
004
10/20/2
004
3/9/2
005
7/27/2
005
12/14/2
005
5/3/2
006
9/20/2
006
2/7/2
007
6/27/2
007
11/14/2
007
4/2/2
008
8/20/2
008
1/7/2
009
5/27/2
009
10/14/2
009
3/3/2
010
7/21/2
010
12/8/2
010
4/27/2
011
9/14/2
011
2/1/2
012
6/20/2
012
11/7/2
0120
500
1000
1500
2000
2500
3000
3500
UBS Global Real Estate Investors Index
Source: Bloomberg Feb 2013
+33%-30%
It’s a similar story with, for example, the MSCI World Real Estate Index and the S&P Global REIT Index
-76%
Attractive forward yields by region and sector
Sector Forward Yield
Office 3.6
Retail 3.7
Industrials 4.8
Residential 3.5
Diversified 4.3
Hotels 2.3
Weighted Average 3.9
45
Region Forward Yield
North America 3.6
Europe 3.3
UK 3.8
Oceania 6.2
Japan 3.4
Hong Kong 2.8
Singapore 5.0
Weighted Average3.9
Source: Bloomberg, UBS , STANLIB at Dec 2012
All regions are trading comfortably above their respective bond yields
Real estate physical values have sufficient protection
Current cap rate spread to 10-year bond yields by country or region (%)
46
Source: Jones Lang LaSalle, IPD, NCREIF, DataStream, UBS October 2012
*Average spread calculated over 11 years to 20 years depending on region
Global Listed Property trading in line with NAVs – Not cheap but not peak
47
3290433085
3326933450
3363433816
3400034181
3436534546
3473034911
3509535277
3546135642
3582636007
3619136372
3655636738
3692237103
3728737468
3765237833
3798738198
3838338564
3874838929
3911339294
3947839660
3984440025
4020940390
4057340725
4093941121
-0.4
-0.3
-0.2
-0.1
0
0.1
0.2
0.3
Global Investors (Discount)/ Premium to NAV (LHS) Average
Source: UBS – Nov 2012* Global Investors – Listed property companies with investment properties
PREMIUM
EXPENSIVE
Global Property earnings track GDP growth
48
Source: UBS, Thomson Reuters, Datastream, JLL, IPD, NCREIF Dec 2012
Balance sheets have been repaired and debt is available and affordable
49
Global REITS Gearing (Net Debt-To-Total Assets)
Source: UBS and DataStream
o 35% is a comfortable level of gearingo Most property companies are raising cheaper debt in the bond marketo 63% to 86% of the debt is fixed for 3 to 5 years
The GDP outlook - though not as exciting - is still positive
50
Source: IMF January 2013
IMF Projections 2012 2013 2014
World 3.2 3.5 4.1
Advanced Economies 1.3 1.4 2.2US 2.3 2.0 3.0
Euro Area -0.4 -0.2 1.0
Japan 2.0 1.2 0.7Emerging Economies 5.1 5.5 5.9China 7.8 8.2 8.5
India 4.5 5.9 6.4
Brazil 1.0 3.5 4.0
Sub-Saharan Africa 4.8 5.8 5.7
South Africa 2.3 2.8 4.1
GDP growthEmployment Growth
Demand for spaceLower vacancies
Higher rents
Higher NAVs & Higher Profits
Higher Share Prices
4 reasons why it makes sense to include Global Listed Property in a Balanced Portfolio
52
15 yrs 10 yrs 5 yrs 3 yrs 1 yr0
2
4
6
8
10
12
14
5.4
7.4
2.1
6.5
10.4
5.7
7.7
2.3
6.9
11.1
6.0
8.0
2.4
7.4
11.8
6.2
8.2
2.5
7.8
12.5
Annualised Returns of Portfolios with Different Weightings in Property
0% Property 5% Property 10% Property 15% Property
Investment Horizon
An
nu
alis
ed
Re
turn
(%
)
1.a) Global total returns (ZAR) – listed property has boosted returns
Source: BNP Paribus Cadiz Quantitative Research
Equity – MSCI Index Bonds – JP Morgan Global Bond Index] Cash – US 3 Month Treasury Bill Property – UBS Global Real Estate
Investors Index
1.b) Global total returns (ZAR) – listed property has provided superior returns
53
Source: Bloomberg, MSCI, UBS, JP Morgan Dec 2012
30/12/2
011
07/01/2
012
15/01/2
012
23/01/2
012
31/01/2
012
08/02/2
012
16/02/2
012
24/02/2
012
03/03/2
012
11/03/2
012
19/03/2
012
27/03/2
012
04/04/2
012
12/04/2
012
20/04/2
012
28/04/2
012
06/05/2
012
14/05/2
012
22/05/2
012
30/05/2
012
07/06/2
012
15/06/2
012
23/06/2
012
01/07/2
012
09/07/2
012
17/07/2
012
25/07/2
012
02/08/2
012
10/08/2
012
18/08/2
012
26/08/2
012
03/09/2
012
11/09/2
012
19/09/2
012
27/09/2
012
05/10/2
012
13/10/2
012
21/10/2
012
29/10/2
012
06/11/2
012
14/11/2
012
22/11/2
012
30/11/2
01290
100
110
120
130
140
150
160
EM Property EM Gov Bond EM Equity DM Property DM Equity DM Gov Bond
Inde
x Pe
rfor
man
ce (r
ebas
ed to
100
) TR
ZAR
EM – Emerging Markets DM – Developed Markets
2) Global Listed Property provides a relatively stable income stream
Source: UBS & Bloomberg Dec 2012
54
19901991
19921993
19941995
19961997
19981999
20002001
20022003
20042005
20062007
20082009
2010-50%
-30%
-10%
10%
30%
50%
Income Return Price Return Total Retun
3) Global Property is good diversifier The average correlation is nowhere near “1” to either Equities or Bonds
55
Source: UBS
Dec-
91
Dec-
92
Dec-
93
Dec-
94
Dec-
95
Dec-
96
Dec-
97
Dec-
98
Dec-
99
Dec-
00
Dec-
01
Dec-
02
Dec-
03
Dec-
04
Dec-
05
Dec-
06
Dec-
07
Dec-
08
Dec-
09
Dec-
10
Dec-
11
-0.60
-0.40
-0.20
0.00
0.20
0.40
0.60
0.80
1.00
1.20
REITs-Equity Correlation REITs-Bond Correlation Avg REIT-Equity Avg REIT-Bond
REIT = Real Estate Investment Trust = Listed Property
4. Global Listed Property is a rand hedge – 2011 example
56
USDZAR
UBS Investors Index
Based to 100
Source: UBS, Bloomberg Jan 2012
01/12/2
010
01/01/2
011
01/02/2
011
01/03/2
011
01/04/2
011
01/05/2
011
01/06/2
011
01/07/2
011
01/08/2
011
01/09/2
011
01/10/2
011
01/11/2
011
01/12/2
011 80.0
85.0
90.0
95.0
100.0
105.0
110.0
115.0
120.0
125.0
130.0
6.0
6.5
7.0
7.5
8.0
8.5
UBS Investors Index (ZAR) UBS Investors Index (USD) USDZAR
UBS Investors Index (Global Property) flat in USD but +20% up in Rand terms
Conclusion
● Global property is a great diversifier
● Currency
● Income, regions and sectors
● Upside risk
● Earnings profile has bottomed
● Physical property cap rates comfortably above bond yields
● Limited supply of new properties
● Low funding costs
● Downside risk
● Lower than expected GDP growth (recession) leading to lower rental growth and rising vacancies
● Global markets volatility
● Yield
● We are looking at USD income (yield) of 3.9% in 2013
● Global market consensus for total returns is 10% to 15% in USD in 2013
Prediction is very difficult, especially about the future Niels Bohr
57
There is definitely a place for global listed property in offshore allocations.
58
15 yrs 10 yrs 5 yrs 3 yrs 1 yr0
2
4
6
8
10
12
14
5.4
7.4
2.1
6.5
10.4
5.7
7.7
2.3
6.9
11.1
6.0
8.0
2.4
7.4
11.8
6.2
8.2
2.5
7.8
12.5
Annualised Returns of Portfolios with Different Weightings in Property
0% Property 5% Property 10% Property 15% Property
Investment Horizon
An
nu
alis
ed
Re
turn
(%
)
Source: BNP Paribus Cadiz Quantitative Research 2013
Equity – MSCI Index Bonds – JP Morgan Global Bond Index] Cash – US 3 Month Treasury Bill Property – UBS Global Real Estate
Investors Index
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