German open ended property funds return zero per cent in March
The latest monthly IPD German Monthly Open-Ended Property Fund Index (OFIX) for March 2014 showed a return of zero per cent, with the sub-index for globally invested funds returning 0.3 per cent.
These outperformed funds focused on Germany and those mainly invested in European markets, which returned 0.2 per cent and -0.1 per cent respectively.
Daniel Piazolo, vice president and Geschäftsführer in Germany, IPD, says: “For the first quarter 2014 the sub-index of funds mainly invested in Germany returned 0.6 per cent, outperforming globally invested funds and funds focused on European markets, which returned 0.3 per cent and -0.1 per cent respectively. The OFIX All Index delivered a return of 0.0 per cent in Q1 2014. The influence on returns of regional investment focus was again exceeded by the effect of funds being in liquidation. The group of OFIX funds in liquidation returned -0.8 per cent in March, in contrast to 0.2 per cent for active OFIX funds. Funds still active in the market achieved a return of 0.6 per cent, while those in liquidation returned a negative -1.9 per cent.
“There is a large spread between the returns of the different funds in liquidation with the worst performing fund producing a total return of -21.6 per cent in the last 12 months, whereas the fund in liquidation with the best performance has a return of -0.9 per cent in the last year. This shows that these funds face quite different challenges and follow varying strategies in how to tackle the liquidation process. The spread between the performance of the active funds is far smaller, with the best active funds showing a annual total return of 5.5 per cent and the worst active fund a total return of -0.9 per cent.”
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