Our Funds

The listed real estate market in South Africa allows us to invest in real estate trusts (REITS), which offer investors exposure to real estate-related opportunities on the Johannesburg Stock Exchange (JSE). Property loan companies and property unit trusts listed on the JSE have been converted into REITS since April 2013. South African REITS are diverse and have invested in offices, retail, industrial, self-storage as well as local and global residences and hotels.

If you want to diversify from traditional asset classes, you can have exposure to the property market without the large capital outlays associated with property investments. When you invest in Reits, you will receive an annual dividend payment and capital growth over time. Share prices could be volatile in the short term, therefore a long-term view beyond five years is required by investors to realize the capital growth opportunity.

Listed Real Estate, as an asset class is inherently lower risk due to diversity of underlying earnings, liquidity and yield certainty. Global listed real estate is an attractive risk diversifier for any South African global investor, offering attractive yields in relation to global bond yields as well directly benefiting from improving fundamentals across various regions and sub-sectors. With this in mind, offshore real estate exposure has gained in popularity among South African investors. Meago’s view is that it is virtually impossible for SA fund managers to have a presence and/or in depth knowledge of the entire global universe of real estate stocks. We understand that considerable consideration has to be given not just to the country macro fundamentals, but also city fundamentals and the property subsectors therein. Over and above this the underlying asset needs to be assessed for quality and suitability. On that basis, we believe that an enhanced index tracker fund; weighted heavily towards the gold standard global real estate index, namely GPR250 REIT index is the best option for South African investors. Meago in turn looks to enhance returns for investors via limited active investments into specific markets. Investors benefit further through a lower fee structure to that of active fund managers.