UBS Property Securities Fund (SBC0816AU) Report & Performance

What is the UBS Property Securities Fund fund?

UBS Property Securities Fund aims to outperform (after management costs) the S&P/ASX 300 Property Accumulation Index over rolling five year periods. The Fund is a portfolio of mainly Australian real estate securities that the Portfolio Manager believes are being undervalued by the market. Eligible investments of the Fund comprise property securities listed on Australian and international recognized exchanges or those we reasonably expect to list within six months. The Fund may invest in financial derivatives to adjust exposure to property securities or to manage investment risk. The Fund can hold a maximum of 20% international property securities and a maximum of 5% Australian listed non benchmark securities. If international property securities are held in the portfolio, they will not necessarily be hedged to the Australian Dollar.

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For UBS Property Securities Fund

UBS Property Securities Fund Fund Commentary September 30, 2023

The Fund returned ‐9.16% during September, underperforming the S&P/ASX 300 AREIT Index by -0.50%.

The top monthly contributor to performance was the Fund’s underweight position in Cromwell Property Group. Cromwell is seeking to address its elevated gearing position by rebasing its dividend and divesting a portfolio of high‐yielding Polish retail assets, however, transaction execution remains challenging.

The Fund’s overweight position in Stockland also contributed to monthly performance. The Group is positively leveraged to a recovery in housing markets, whereby national dwelling prices rose for the sixth consecutive month. Stockland is also defensively positioned with a strong balance sheet to withstand rising interest rates.

The main detractor from monthly performance was the Fund’s overweight position in Rural Funds Group. The Group is currently undertaking productivity upgrades across cattle and cropping properties, whilst also pursuing a major macadamia development program. Capital intensive business models underperformed during September, with market sentiment shifting to a ‘higher for longer’ interest rate outlook.

The Fund’s underweight position in Centuria Industrial REIT also detracted from monthly performance. The Group is benefiting from strong operational performance and rental reversion in its under‐rented investment portfolio. Despite resilient industrial fundamentals, underlying earnings growth is elusive due to a long lease profile and an inability to catch the cycle.

READ HISTORICAL PERFORMANCE COMMENTARIES

Product Snapshot

  • Product Overview
  • Performance Review
  • Peer Comparison
  • Product Details

Product Overview

Fund Name APIR Code
? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.
Structure
?
Asset Class
? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.
Asset Category
? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.
Peer Benchmark Name
? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.
Broad Market Index
? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.
FUM
? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.
Management Fee
? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.
Performance Fee
? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.
Spread
? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
UBS Property Securities FundSBC0816AUManaged FundsProperty and InfrastructureAustralian Listed PropertyProperty - Australian Listed Property IndexASX Index 200 A-REIT Index250.64 M0.85%0.00%0.25%

Performance Review

Fund Name Last Month
? Returns after fees in the most recent (last) month).
3 Months Return
? Returns after fees in the most recent 3 months.
1 Year Return
? Trailing 12 month returns.
3 Years Average Return
? Average Annual returns from the last 3 years.
Since Inc. Average Return
? Average (annualised) returns since inception
1 Year Std. Dev. (Annual)
? The standard deviation (or annual volatility) of the last 12 months.
3 Years Std. Dev. (Annual)
? The average standard deviation (or annual volatility) from the last 3 years.
Since Inc. Std. Dev. (Annual)
? The average standard deviation (or annual volatility) since the fund inception.
1 Year Max Drawdown
? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
3 Year Max Drawdown
? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Since Inc. Max Drawdown
? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
UBS Property Securities Fund2.05%2.9%28.3%7.88%7.52%23.17%23.56%18.02%-14.07%-30.11%-77.09%

Peer Comparison

Fund Name Peer Index Name
? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.
12 Months Excess Return
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
Excess Return Annualised Since Inception
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
12 Months Alpha
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
Alpha Annualised Since Inception
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
12 Months Beta
? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
Beta Annualised Since Inception
? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
12 Months Tracking Error
? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
Tracking Error Since Inception
? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
12 Months Correlation
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Correlation Since Inception
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
UBS Property Securities FundProperty - Australian Listed Property Index5.67%-0.09%NA%NA%NA%1.083%3.68%0.990.98

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
UBS Property Securities FundYes-https://www.ubs.com/au/en/asset-management.html-

Product Due Diligence

What is UBS Property Securities Fund

UBS Property Securities Fund is an Managed Funds investment product that is benchmarked against ASX Index 200 A-REIT Index and sits inside the Property - Australian Listed Property Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The UBS Property Securities Fund has Assets Under Management of 250.64 M with a management fee of 0.85%, a performance fee of 0.00% and a buy/sell spread fee of 0.25%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the UBS Property Securities Fund has returned 2.05% in the last month. The previous three years have returned 7.88% annualised and 18.02% each year since inception, which is when the UBS Property Securities Fund first started.

How is risk measured in this investment product?

There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since UBS Property Securities Fund first started, the Sharpe ratio is NA with an annualised volatility of 18.02%. The maximum drawdown of the investment product in the last 12 months is -14.07% and -77.09% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.

What is the relative performance of the investment product?

Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The UBS Property Securities Fund has a 12-month excess return when compared to the Property - Australian Listed Property Index of 5.67% and -0.09% since inception.

Does the investment product produce Alpha over its Peers?

Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. UBS Property Securities Fund has produced Alpha over the Property - Australian Listed Property Index of NA% in the last 12 months and NA% since inception.

What are similar investment products?

For a full list of investment products in the Property - Australian Listed Property Index category, you can click here for the Peer Investment Report.

What level of diversification will UBS Property Securities Fund provide?

UBS Property Securities Fund has a correlation coefficient of 0.98 and a beta of 1.08 when compared to the Property - Australian Listed Property Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.

How do I compare the investment product with its peers?

For a full quantitative report on UBS Property Securities Fund and its peer investments, you can click here for the Peer Investment Report.

How do I compare the UBS Property Securities Fund with the ASX Index 200 A-REIT Index?

For a full quantitative report on UBS Property Securities Fund compared to the ASX Index 200 A-REIT Index, you can click here.

Can I sort and compare the UBS Property Securities Fund to do my own analysis?

To sort and compare the UBS Property Securities Fund financial metrics, please refer to the table above.

Has the UBS Property Securities Fund been independently verified by SMSF Mate?

This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.

How can I invest in UBS Property Securities Fund?

If you or your self managed super fund would like to invest in the UBS Property Securities Fund please contact via phone or via email .

How do I get in contact with the UBS Property Securities Fund?

If you would like to get in contact with the UBS Property Securities Fund manager, please call .

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the UBS Property Securities Fund. All data and commentary for this fund is provided free of charge for our readers general information.

Historical Performance Commentary

Performance Commentary - August 4, 2023

The Fund returned +4.00% during August, outperforming the S&P/ASX 300 AREIT Index by 1.82%.

The top monthly contributor to performance was the Fund’s overweight position in Goodman Group. The industrial fund manager outperformed following the release of its FY23 earnings result, in which they announced a significant data centre development opportunity. We continue to be attracted to Goodman Group for its sustainable earnings growth, underpinned by strong underlying fundamentals in the industrial sector and a sizeable development pipeline.

The Fund’s underweight position in Charter Hall Long WALE REIT also contributed to monthly performance, which underperformed after forward earnings guidance fell short of market expectations. The Fund maintains an underweight position in the REIT due to its stretched balance sheet position, tight capitalisation rates, and continued headwinds from rising cost of debt.

The largest detractor from monthly performance was the Fund’s overweight position in Abacus Property Group. Abacus underperformed post the de‐staple of its self‐ storage assets into a separate REIT. We believe the Group’s core commercial portfolio is trading significantly below intrinsic value with a recapitalised balance sheet.

Performance Commentary - July 31, 2023

The Fund returned +4.06% during July, outperforming the S&P/ASX 300 AREIT Index by 0.17%.

The top monthly contributor to performance was the Fund’s overweight position in Rural Funds Group. The Group is currently pursuing a major macadamia development program, as well as deploying capital across cattle and cropping productivity upgrades. We continue to be attracted to the uncorrelated cash flows with strong and appreciating asset backing.

The Fund’s overweight position in Lifestyle Communities also contributed to monthly performance. Lifestyle Communities is significantly scaling its production rate with the launch of seven new projects, underpinned by strong demographic tailwinds. The manufactured housing estate developer outperformed following the RBA’s decision to pause its rate hiking cycle.

The main detractor from monthly performance was the Fund’s overweight position in Abacus Property Group. The self‐storage sector exhibited softening fundamentals, with lower occupancy levels due to a weaker consumer environment. Abacus is in the process of demerging its commercial and storage portfolios to unlock securityholder value and enhance the strategic outlook of the standalone storage business.

Performance Commentary - June 30, 2023

The Fund returned +0.69% during June, outperforming the S&P/ASX 300 AREIT Index by 0.78%.

The top monthly contributor to performance was the Fund’s overweight position in HMC Capital Limited. The fund manager announced a $400m equity commitment within its Last Mile Logistics Fund, marking the Group’s first significant institutional equity contribution. The Group also announced its Unlisted Healthcare & Life Sciences Fund is on track for its first close in September.

The Fund’s underweight position in Region Group also contributed to monthly performance. The convenience and discretionary retail asset owner underperformed in response to falling consumer confidence in a rising interest rate environment.

The main detractor from monthly performance was the Fund’s overweight position in National Storage REIT. The storage asset owner underperformed after providing a market update that disclosed a fall in occupancy, impacted by a weaker consumer environment. The Fund’s overweight position in Ingenia Communities Group also detracted from monthly performance after flagging increased buyer caution is impacting residential activity levels and sales rates.

Performance Commentary - May 31, 2023

The Fund returned -2.28% during May, underperforming the S&P/ASX 300 AREIT Accumulation Index return of -1.81%.

The Fund’s overweight position in HMC Capital Limited was the strongest contributor to monthly performance. The fund manager outperformed following the acquisition of a $1.2bn Healthscope hospital portfolio and the concurrent launch of its unlisted healthcare strategy. The deal increases the Group’s total assets under management to $7.5bn and demonstrates an ability to execute large complex transactions in challenging capital market conditions.

The Fund’s overweight position in Goodman Group also contributed to performance after the Group raised earnings guidance during the month. Goodman Group remains a key overweight holding with exposure to world class industrial assets and significant balance sheet capacity to execute on its sizeable development pipeline.

Detractors to performance included the Fund’s overweight position in Lifestyle Communities. The manufactured housing estate developer underperformed after lowering its FY23 home settlement forecasts. The Group’s medium term settlement targets were retained, suggesting the timing issue is not reflective of production constraints or lower buyer demand. Lifestyle is significantly scaling its production rate with the launch of seven new projects, underpinned by strong demographic tailwinds.

The Fund’s overweight position in Rural Funds Group also detracted from performance. The Group is currently deploying capital across cattle and cropping productivity upgrades, whilst also pursuing a major macadamia development program. The market remains cautious towards capital expenditure intensive business models; however, we are comfortable that the Group has sufficient liquidity to execute its growth strategy. We continue to be attracted to the uncorrelated cash flows with strong and appreciating asset backing.

Performance Commentary - April 30, 2023

The Fund returned 5.36% during April, outperforming the S&P/ASX 300 AREIT Accumulation Index return of 5.16%. The main contributors to relative performance were the Fund’s overweight residential exposures, which posted strong monthly returns as national house prices stabilised following the first RBA pause after ten consecutive interest rate hikes.

The Fund’s overweight position in Mirvac was the strongest contributor to monthly performance, which reported its Q3 update and rebased FY23 earnings by deferring a portion of residential settlements and capital profit recognition into the following financial year. Mirvac also announced progress across several strategic initiatives; introducing capital partners across its entire build-to-rent pipeline and key commercial developments, whilst also entering due diligence across two major office assets to complete its $1.3bn divestment program. The Fund’s overweight position in Stockland also contributed to performance, which similarly reported its Q3 update and demonstrated positive momentum across all business divisions. Its residential segment reported a large rebound in buyer enquiry levels, back to pre-pandemic levels, whilst its commercial trust reported strong industrial leasing and retail sales outcomes.

Detractors to performance included the Fund’s overweight position in Rural Funds Group, which is currently ramping up its capital expenditure across cattle and cropping productivity upgrades, whilst also pursuing a major macadamia development program. The market continues to take a cautious view towards capital-hungry business models. However, we are comfortable that the Group has sufficient liquidity to execute its growth strategy, and we remain attracted to the uncorrelated cash flows with strong and appreciating asset backing. The Fund’s overweight position in Goodman Group also detracted from performance, which lagged the Index with minimal news flow. We expect the Group to report a strong trading update in May, benefiting from strong industrial market tailwinds across its global platform.

Performance Commentary - March 31, 2023

The Fund declined by ‐6.59% during March, outperforming the S&P/ASX 300 AREIT Index by 0.25%.

During the month, the top contributor to performance was the Fund’s underweight position in GPT Group, which retracted ‐10% as the market assessed tightening credit conditions and the impact to office valuations. These similar concerns weighed on the performance of listed fund managers, whereby interest rate volatility continued to suppress transactional activity. To this extent, the Fund’s underweight positions in both HMC Capital and Centuria Capital Group contributed to monthly relative performance. In what was a challenging month for absolute returns, the Fund’s overweight position in Peet Limited positively contributed on the back of improving residential momentum and a moderation in the cash rate outlook.

The month’s outperformers were typically real estate securities with low leverage, against a backdrop of mounting credit concerns. As such, the Fund’s underweight positions in BWP Trust and Waypoint REIT were the biggest detractors to relative performance, given their defensive portfolios and capital structures.

Performance Commentary - February 28, 2023

The Fund returned -0.74% during February, marginally underperforming the S&P/ASX 300 AREIT Accumulation Index return of -0.36%.

The main contributors to relative performance included the Fund’s overweight position in National Storage REIT, which upgraded earnings guidance on the back of resilient customer demand and robust rate growth across its portfolio. The Fund also benefited from an overweight position in Arena REIT, which similarly outperformed market expectations and demonstrated resilient childcare fundamentals with strong inflation-capture in its rental contracts and improving development returns.

Detractors to performance included the Fund’s overweight position in Rural Funds Group, which is currently ramping up its development program and faced minor earnings impacts from commodity price volatility in its operating assets and adverse weather. The Fund’s overweight position in Ingenia Communities Group also detracted from performance, which downgraded its residential settlement guidance, citing delays due to labour constraints and weather impacting construction timeframes. Looking beyond the current reporting period, we believe Ingenia will continue to benefit from the structural drivers underpinning the lifestyle communities sector, such as an aging population supported by government rent assistance.

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