Welcome to the Desktop Broker mFund Asset Class series

Not all property investments are the same. Let's talk about Commercial Property.

A 2019 prediction: stocks will fluctuate, rents will be stable

A 2019 prediction: stocks will fluctuate, rents will be stable

This month, the Desktop Broker mFund Asset Class series is looking at Commercial Property.

Whilst it’s true that a house, office block and shopping centre are all property assets, from an investment perspective they’re worlds apart.

As the majority of a REIT return comes from income generated from rents based on long-term leases (3, 5, or 10 years vs. 1 year for residential), financial market and business cycle volatility has less of an impact on earnings.

An investment in a listed property fund provides your clients with exposure to a diversified portfolio of commercial property which generates a regular and stable income stream.

Find out more below.

The benefits of Commercial Property in a diversified portfolio

Commercial property investing is all about income.

If you're looking for a higher level of income security for you clients' portfolios, listed property trusts could be an option. 

Your clients also benefit from the sector's defensive characteristics:

  • Rent is predictable. Businesses must pay rent regardless of whether their cash flows are strong or weak. 
  • Long contracted lease terms provide reliable income (usually contracted over 3 to 5 years and it's not uncommon for 10, 12 or even 15 year leases).
  • Regular rental increases offer protection against inflation. Most commercial leases have contracted rent reviews directly linked to CPI, fixed rates or market-based reviews.

Find out more on APN AREIT Fund

Find out more on APN Asian REIT Fund

The APN AREIT Fund

The APN AREIT Fund

The APN AREIT Fund is actively managed and focused on delivering regular income with less risk than the market. Your clients get exposure to more than 3,000 underlying commercial properties across Australia. The Fund:

  • Gives your clients access to assets like Westfield Bondi & Pitt St in Sydney, Chadstone in Melbourne and Governor Phillip & Macquarie Tower in Sydney.
  • Aims to generate sustainable, regular and relatively high income returns.
  • Provides a monthly income which is tax advantaged.
  • Aims to provide an income yield 10% higher than the average yield of the ASX200 AREIT dividend yield.
  • Is 100% liquid.
  • Is accessible via the mFund service (mFund code: APF01).

The APN Asian REIT Fund

The APN Asian REIT Fund

The APN Asian REIT Fund is also an actively managed fund that is focused on delivering regular monthly income with less risk than the market. An investment in the fund provides your clients with exposure to more than 6,000 underlying commercial properties across the developed cities of Asia (primarily Japan, Hong Kong and Singapore). The Fund:

  • Gives your clients access to assets like the Vivo City in Singapore and the Harbour City in Hong Kong.
  • Aims to provide a stable, predictable and relatively high income, every month.
  • Aims to provide an income yield 10% higher than the average yield of the Bloomberg Asian REIT index.
  • Is 100% liquid.
  • Is accessible via the mFund service (mFund code: APF02).​

APN - a commercial property specialist

APN - a commercial property specialist
  • They've been focusing exclusively on property for more than 20 years. 
  • They have an active investment style.
  • Their philosophy is “property for income”.
  • They co-invest with investors.

With APN, you know you're in good hands with a team of commercial property experts.

How to invest for your clients

The APN AREIT Fund and APN Asian REIT funds are available on our mFund platform. Simply place an order online through the order pad:

1. Login to your account and go to the order pad

  • The mFund code for the APN AREIT Fund is APF01.
  • The mFund code for the APN Asian REIT Fund is APF02.

2. Read the fund profile and the Product Disclosure Statement.

3. When you're ready to invest, choose the ‘Managed Funds’ option on the Order Pad and place your order online. 

4. Your new mFund units are transferred and can be seen in your clients' portfolios

No need to provide any additional paperwork from your clients, the Fund will settle through their existing nominated bank account.

Find out more & read the fineprint

Returns:

  • As at 31 December 2018. Current running yield is calculated daily by dividing the annualised distribution rate by the latest entry unit price. Distributions may include a capital gains component. Distributions are not guaranteed and past performance is not an indicator of future returns.
  • Returns after all fees and expenses. Assumes distributions are reinvested. Investors' tax rates are not taken into account when calculating returns. Past performance is not an indicator of future performance.
  • Fund inception 19 January 2009.
  • AREIT index is the S&P/ASX 300 Property Trust Accumulation Index. 

You can find out more information on the APN AREIT Fund here.

This has been prepared for general information purposes only and without taking your objectives, financial situation or needs into account. You should consider these matters and read the product disclosure statement (PDS) for each of the funds described in its entirety before you make an investment decision. The PDS contains important information about risks, costs and fees associated with an investment in the relevant fund. For a copy of the PDS and more details about a fund and its performance click here.

Desktop Broker charges a marketing fee for the promotion of the APN AREIT Fund.

Returns:

  • As at 31 December 2018. Current running yield is calculated daily by dividing the annualised distribution rate by the latest entry unit price. Distributions may include a capital gains component. Distributions are not guaranteed and past performance is not an indicator of future returns.
  • Returns shown are net of fees and expenses and are annualised for periods greater than one year. Assumes distributions are reinvested. Investors’ tax rates are not taken into account when calculating returns. Past performance is not an indicator of future performance.
  • Returns calculated since 19 July 2011 (when the Fund commenced). 
  • Asian REIT index is the Bloomberg Asia REIT Index.

You can find out more information on the APN Asian REIT Fund here.

This has been prepared for general information purposes only and without taking your objectives, financial situation or needs into account. You should consider these matters and read the product disclosure statement (PDS) for each of the funds described in its entirety before you make an investment decision. The PDS contains important information about risks, costs and fees associated with an investment in the relevant fund. For a copy of the PDS and more details about a fund and its performance click here.

Desktop Broker charges a marketing fee for the promotion of the APN Asian REIT Fund.

Images have been sourced as below:

  • Clarke Quay: CapitalLand
  • Emporium Melbourne: Vicinity Centres
  • Laguna Plaza: Fortune REIT
  • Chatswood Chase: Vicinity Centres
  • Westfield Sydney: Scentre Group
  • Westfield Bondi Junction: Scentre Group