August 2020 – Fund update
Marriott First World Hybrid Real Estate Fund is re-opening
First World Hybrid Real Estate Plc is a real estate investment company that invests in a combination of direct real estate and listed real estate investment trusts.
The objective of this Fund is to combine the benefits of direct and listed First World real estate to generate a reliable, predictable and growing income. With the majority of the return generated from the income yield, the investment outcome can be anticipated with a reasonable degree of certainty.
In the five months since trading was temporarily placed on hold, the Fund has performed well given the unprecedented uncertainty due to the COVID-19 impact on the property market. During this period the direct property portfolio saw:
- Growth in rental income
- No rental write-offs
- An increase in the overall portfolio valuation
- The Fund has continued to pay quarterly dividends
Despite the market uncertainty and volatility, the Fund has performed well over the last 12 months providing investors with a return of 6.4% in Sterling. The outlook for the First World Hybrid Real Estate Fund remains good due to its emphasis on distribution warehousing. This sector has benefitted from strong occupational and investment demand.
The Fund’s 4.5% income yield is attractive in an investment environment where income returns are increasingly hard to come by, and especially when compared to a 10 year UK bond yield which is now yielding 0.2%. Investors in the First World Hybrid Real Estate Fund can remain confident that the Fund will continue to serve them well over the longer term and given the First World Hybrid Real Estate’s emphasis on:
- High-quality distribution warehouses
- Robust tenants
- Long term leases
The portfolio will continue to provide investors with between 4.5% – 6.5% in Sterling. For investors looking to diversify their investment portfolios, the First World Hybrid Real Estate Fund provides attractive returns in a first world currency and very little to no correlation to the world stock markets.
For more information or to invest in the First World Hybrid Real Estate Fund please contact Kevin or Greg.
June 2020 – Update from Marriott
Local Bonds, Offshore Equities
On Tuesday last week, Louwrens Coetzee and Duggan Matthews of Marriott Asset Managers presented their outlook for local and offshore investments.
Louwrens opened the presentation with the implications of the recent interest rate cuts and what this will mean for local investors who are seeking an income from their investments. Investors will need to be aware that yields have declined and this will lead to a reduction in the level of income they are receiving. The Marriott Core Income Fund has continued to provide investors with a reliable, predictable and above inflation level of income over the past 5 years.
In the second part of the presentation, Duggan provided insights into where Marriott is continuing to find excellent investment opportunities offshore.
Duggan explained how Marriott’s investment philosophy of selecting companies that are able to grow and increase their dividends will become even more relevant now, as we face up to the uncertainties of the post-COVID-19 world.
Duggan also shared their annual return expectations for the Marriott International Investment Portfolio (IIP) for the next five years.
It is Marriott’s belief that the best investment opportunities continue to remain offshore and investors looking for long term capital appreciation should consider investing in quality companies that will emerge from the current crisis in a stronger position than many of their peers.
For those investors who missed out on the presentation and would like a copy of the slides, please contact the office directly for a copy to be sent to you.