Listed property has provided investors with approximately 26%, 10-year annual compound, returns in South Africa and these funds give investors a seamless and cost-effective way in which to invest.
ProptraxTen (JSE: PTXTEN) tracks the 10 largest listed property shares on an equally weighted basis, whilst ProptraxSAPY (JSE: PTXSPY) tracks the traditional property index and all its components. Both products have been well received by the market with a combined market cap of over R200 million.
Listed property investments are ideal for investors looking for income and a protection against inflation over the longer term. For this reason the asset class appeals to a broad set of investors. For more adventurous, risk-taking investors there are now also CFDs available from Nedbank Capital on the two ETFs.
David Polkinghorne, MD of Grindrod Bank, said: "With the ETF market set to grow in South Africa, Grindrod Bank aims to provide an extended suite of products, each with their own unique value proposition to Investors. Grindrod Bank will be launching the GTRAX range of ETFs over the course of 2013 and 2014. GTRAX will offer a broader range of ETF products in asset classes, suitable for retail, institutional, and pension fund investors."
Last year, Grindrod Bank listed PREFEX, an ETF that tracks the SA preference share market. This fund has also raised just over R200 million since listing in March 2012. PREFEX is currently yielding 7.3% gross and will change its name to PREFTRAX once regulators have given their approval to go ahead.
Craig Hallowes, a director of Proptrax as well as CEO of newly listed Rockcastle Global Real Estate Company, said: "We are pleased to have partnered with Grindrod Bank as we believe they will grow PropTrax and GTRAX both in terms of assets and delivering other attractive and innovative products to investors. Resilient will remain a stakeholder in the two property ETFs as we would naturally continue to encourage broad investment in this asset class. We are confident that ETFs provide great prospects for South African investors, taking into account investment trends globally."
