The Atlas High Income Property Fund (Fund) is an actively managed portfolio of domestic property securities which uses a derivatives overlay strategy to generate income.
This Fund utilises a detailed quantitative and qualitative analysis to create a concentrated portfolio of property securities within the Australian listed property sector.
Fund Objective and Strategy
The Atlas High Income Property Fund aims to build a portfolio of high quality listed property securities that:
- offer recurring earnings backed by rental streams, not one-off development profits;
- trade at a discount to NTA (net tangible assets);
- have a lower level of gearing than the ASX200 Property Index; and
- deliver a stable and growing stream of distributions to investors.
This approach has delivered lower volatility and avoided the value-destructive capital raisings that the less conservative property trusts were forced to make during the GFC.
The investment style for this Fund is based on quality investing. The Fund seeks to avoid risky property trusts, which are often those with a large proportion of earnings derived from one-off transactions, and aims to populate the portfolio with investments in trusts that have high-quality recurring earnings and improving earnings quality. In the manager’s experience, the market might misprice a trust’s earnings as low quality when the underlying fundamentals of that trust are improving.
Additionally, the manager seeks to boost income by utilising an active strategy of selling call options over this portfolio of ASX-listed property securities. This effectively converts a portion of tomorrow’s uncertain gains into certain income today. The advantage of selling covered calls every quarter is that unlike other property funds that receive distributions from the trusts held twice a year in August and February, the Atlas High Income Property Fund will receive extra income four times a year.
The Fund pays distributions quarterly.
Click here for the latest performance of this Fund and other property securities funds.
The Fund offers daily liquidity.
The Fund charges an ongoing management fee of 0.95% of the Net Asset Value of the Fund.
There is a 0.15% spread between the buy unit price and the sell unit price.
For more information please contact the manager for a PDS.
For more information on unlisted property funds and property syndicates please refer to the following guide.
The information provided above should be seen as factual information and not financial advice. All the information provided is not intended to imply any recommendation or opinion about a financial product.
We recommend seeking advice from professional and qualified financial planners prior to investing in any financial product.
- Category : Property Securities Funds
- Manager : Atlas Funds Management
- Term : Open-ended
- Yield : n/a
- IRR : n/a
- Minimum Investment : 10000