Listed property trusts hard hit
Listed property trusts have suffered from the sharemarket volatility this week and lost ground as investors withdrew their funds.
Brokers believe that the volatile trends will continue and hit even the LPT sector, which has been the sharemarket's strongest performer over the last year.
Over the past year, the ASX 300 Property Index achieved a cumulative return of 15.1 per cent, as opposed to the ASX 200's -3.3 per cent. While equities have been shaky, the LPT sector has been a safe haven for investors, due to the fact that the sector offers higher yields and consistent cash flow.
However, this week investors have moved their money in and out of LPTs as uncertainty about where equities are heading sets in.
Brokers say, however, that the sector remains strong for the long term, even though office leasing markets are weaker.
For the current situation, UBS Warburg recommends the retail sector for the best value, particularly bulky goods.