In their latest Monetary Policy update, the Reserve Bank of Australia states the world economy is expected to grow at a below-trend pace this year and has kept the cash rate on hold at 4.25%. As global markets continue to face steep challenges, market volatility persists.

While market uncertainty prevails, the appeal of higher yielding “bricks and mortar” is set to rise. With a renewed focus on pure rental income and lower risk strategies, AREITs are expected to gain favour with investors seeking steady earnings and the relative security of “hard assets”.

In this month’s Hot Topic, we discuss why a return to the traditional and conservative model is supportive of a positive outlook for the AREIT sector.

On behalf of all of us here at APN, we hope you had an enjoyable Easter break and thank you for your continued support.

APN’s own Damian Diamantopoulos, APN Fund Manager was recently invited to join BRR Media for their ‘Friday afternoon round table’.

Tune in to Damian's interview to hear why APN is one of Cromwell’s largest investors and APN’s view on the broader AREIT yield story.

Highly rated by several leading research houses and offering a competitive distribution yield over 8% paą, the APN AREIT Fund has become the ‘fund of choice’ for investors who have contributed over $200 million in investor funds since 2009.

APN’s Head of Distribution, Rene Daquino commented, “It is pleasing to see investors are confident to invest back into the commercial property market. In volatile times, the AREIT sector continues to show its true defensive characteristics delivering a total return of 14.4% pa˛ to 31 March 2012, outperforming the broader equities market by 3.1% over the period.”

Visit the APN AREIT Fund page for more information.