Another steady year for unlisted property
Australian unlisted wholesale core property had another steady year in 2011, returning 9.3 per cent after gearing and fees, according to the Mercer/IPD Australian Pooled Property Fund Index.
This was despite a slight decline of 15 basis points in the final quarter due to slightly lower capital returns, with the 12 months to September 2011 having returned 9.5 per cent.
The data represents a slight improvement on 2010 when the index returned 9.1 per cent for the year.
The average annual distribution yield for the wholesale core property sector as at December 2011 was steady at 5.9 per cent, according to the index.
Retail was the best performing sector for the year with an annual return of 9.9 per cent, ahead of diversified funds (9.7 per cent), office (8.3 per cent) and industrial (7.4 per cent).
Managing Director of IPD in Australia and New Zealand Dr Anthony De Francesco said the data reflects a stabilisation in the underlying property asset market.
"The short term outlook is for returns to remain generally steady," he said.
Recommended for you
Pinnacle’s London affiliate, Life Cycle Investment Partners, has secured over $15 billion in FUM in its first year and achieved profitability, the firm’s fastest affiliate to do so.
For foreign fund managers looking to come to Australia, a financial services law firm has shared which regulatory option offers them the quickest pathway?
Betashares has partnered with a US fund manager to form a private capital division aimed at providing financial advisers and wholesale clients with private markets investments.
GQG Partners has lost over US$1 billion from an institutional client, contributing to FUM falling by US$6 billion in July, as it flags fund underperformance could lead to continued outflows.
