A: Thanks for the question.

I think it largely depends on your view on US interest rates. If you expect them to keep going up, then reducing weight (divesting) of property securities will make sense.

Interestingly, Real Estate was the “best” performing sector on the ASX in March with a return of -0.2%. Year to date, however, it is amongst the laggards with a return of -5.31% (follows a very poor February when bond rates rose – in March, they stabilized and fell back a little).

Personally, I am underweight the real estate sector (which is largely the listed property trusts). I suggest you stay underweight this sector.

Regards