Out-performing the market
December 29, 2015
While 2015 has been a volatile year on global investment markets, Sentinel’s specialist focus on Australia’s unlisted commercial property sector means we have not only withstood the macro international and national economic shocks but are well positioned to maintain our market out performance.
In fact, unlisted commercial property is increasingly being nominated as the standout investment performer with the strongest outlook by a growing number of economic commentators.
Shane Oliver, the chief economist of AMP Capital chief economist, says the outlook for unlisted commercial property is particularly attractive compared to over-valued Australian residential property, especially in Melbourne and Sydney, and other asset classes, such as bonds and equities. The attractive yields on offer from unlisted commercial property compared to other assets continue to point to solid returns from commercial property in the years ahead, he concludes.
Prominent financial commentator, and Sentinel investor, Noel Whittaker is another who has pinpointed the value and out performance of unlisted commercial property investment. “I think residential real estate is too hard for the average investor and I would never invest on my own again in non-residential property. You guys have a very special niche,” Noel says.
Sentinel has been ahead of the game for five years now and we are determined to stay there, so that our investors continue to enjoy the benefits of our Funds outperforming alternative investment vehicles. As outlined above, we are always seeking out new investment opportunities that have not yet been identified by the chasing pack as well as ‘taking sugar off the table’ when attractive divestment opportunities are presented.
Our commitment to being ‘a first mover’ before the others catch up also requires an understanding of the underlying human behavior that drives the herd mentality of most mainstream investors. We always take time to look ahead to the big picture of where the ‘lemmings’ will be investing in the future. The market is made up of people and to keep out performing it, you need to understand the human side of investing and that rational thought rarely wins out over emotion and following what everyone else is doing.
Sentinel has proudly built its success on doing what others are not because “if you do what everybody else does, you end up where everybody else is”.
I would like to thank all our investors for your ongoing support and wish you all a happy and safe Christmas and a successful and prosperous 2016.