Total returns for Australian unlisted wholesale core property funds decline
Total returns for Australian unlisted wholesale core property funds have declined over the year to September 2011 compared with the year to June 2011, and the latest quarter indicates moderate returns over the coming period, according to the Mercer/IPD Australian Pooled Property Fund Index - Core Wholesale.
The data revealed that total returns for wholesale core property funds fell 30 basis points from 9.8 per cent over the year to June 2011 to 9.5 per cent over the year to September 2011. This decline was due to capital returns moving from 3.5 per cent in the year to June 2011 to 3.2 per cent in the year to September 2011, the research stated.
Despite this decline, average annual distribution yield was stable at 6 per cent as at September 2011. Fund returns remained relatively steady throughout the course of 2011 following the recovery phase from the global financial crisis, figures revealed.
In a breakdown of each sector, diversified funds outperformed over the September 2011 year with a total return of 10.3 per cent, followed by retail sector funds at 9.2 per cent, office sector funds at 8.8 per cent and industrial sector funds at 7.1 per cent.
IPD managing director in Australian and New Zealand Dr Anthony De Francesco said that unlisted core wholesale property funds have moderated over the recent quarter because of soft macroeconomic activity and weak capital market conditions.
"Given uncertainty in global capital markets we are likely to see a moderation in returns for global property markets over coming periods," De Francesco said.
Recommended for you
Helped by adviser demand, year-to-date flows into the two-largest ETF providers are more than double the volume they were at the same time last year as Vanguard’s largest ETF passes $20 billion.
Betashares is gearing up to launch two new ETFs in a clear bid to challenge similar offerings from global ETF giants.
ETF provider Global X has surpassed $10 billion in assets under management and is now targeting to double this figure by 2027.
With active players closing funds and struggling to hold their own against passive players, recruiters have debated whether there is still a hiring market out there for active managers?
