Pentacle Diversified Property Fund delivers robust returns
Pentacle Property Funds Management announced that its flagship fund, the Pentacle Diversified Property Fund, has delivered 11.88% in total returns, after fees, in the first year of its operation.
This result exceeds the fund’s performance benchmark to deliver a total return of 3.5% above the 10 year government bond yield. The fund has provided 7.8% distribution income.
According to Pentacle Property Funds Management, they are pleased to deliver these returns to its investors and to demonstrate that the fund is performing much as it was designed. Its unique fund of unlisted property funds strategy allows them to blend underlying investments together to create a widely diversified portfolio, offering superior risk adjusted returns and liquidity.
Pentacle Property Funds Management will continue to meet growing investor demand for direct property investments through building strong relationships with small institutional investors and financial advisory groups, targeting self managed super funds and individual retail investors.
According to Pentacle Property Funds Management, its zero allocation to the listed property sector has allowed them to avoid the recent share market volatility.
It is well known that listed property trusts have underperformed over the last few months and this has resulted in investors channeling cash into the unlisted sectors.
Unlisted property has demonstrated risk adjusted returns over the past 20 years and should be considered a core part of a balanced portfolio.
Property Funds Management benchmark asset allocation should have a significant probability of meeting its investment objectives of an income return of 6.5% p.a. and a total return of 3% above the 10 year Government bond yield. The Pentacle Diversified Property Fund has thus far exceeded all these objectives.
Unlisted property will continue to offer the purest exposure to the stable rental income stream derived from property investments.
About Pentacle Property Funds Management:
Pentacle Property Funds Management Limited is a direct property funds management group. It has launched the Pentacle Diversified Property Funds as the first diversified unlisted direct property fund of funds to invest in the retail, industrial, international, special opportunity / development funds and office sectors by blending leading sector specialists.
Investors can choose between two funds, differentiated only by their liquidity and redemption features:
Pentacle Diversified Property Fund- is an open-ended investment fund offering redemption within 6 months of receipt of a redemption notice (although the Trustee expects to meet redemptions within 30 days for amounts of less than $1m and 60 days for larger amounts).
Pentacle Diversified Property Fund-Enhanced-same structure as the standard portfolio with a redemption policy that promises redemption within 3 days of receipt of a redemption notice.
27-Aug-2007