Hi Nigel, Interesting concept, not sure if a derivative is such a good idea with so many shortsellers out there already. St George own part of a fund manager called Ascalon who run Fortuna Funds Management which invests directly into residential property. Fortuna Funds Management - Residential Property Trust of Australia Cheers, Dan PS This is general information and not a recommendation to buy, sell or hold any securities or managed funds.
In their PDS I don't see how they show the LPT sector as the highest performing sector out of all classes..
Hi CRC, Are you referring to Graph 1, page 11 of the PDS? http://www.fortunafunds.com.au/Documents/RPTA_PDS.pdf This graph shows that retail property, listed property, residential property and shares all return an average of over 12% pa. Like I've said in other posts, as long as your invested in growth assets you'll win in the end. If your referring to Graph 2 on the same page, I would say that the PDS date is 26 September 2006, it would be very interesting to see more up-to-date figures I can't believe there is still a thread about people saying whether shares or property are better. I think both is important for diversification and both can be leveraged 100% (some forum members haven't stumbled across Perpetual Investment Series and Macquarie Protected Loans which can be leveraged to 100% just like a property loan with a 100% LVR). Also think Long Term Capital Management which LVR'd to the max (and messed up!). I'm hoping that other members will realise this soon. Cheers, Dan