German real estate Spezialfonds have generated their highest annualised total return since 2009, according to MSCI.
The IPD German Quarterly Spezialfonds index (SFIX), which now covers 180 funds with a net asset value of €45.1bn, posted an annualised total return of 3.7% in Q2 2016 – the highest since Q3 2009.
The figure also beat the index’s three-year, five-year, and 10-year annualised total respective returns of 2.5%, 2.2% and 2.9%.
Sebastian Glaesner, vice president, MSCI, said: “The SFIX achieved its best results in several years, which reflects the resilience and attractiveness of property investment and property funds during the uncertainty that marked the first half of the year.”
The index recorded the highest returns in several years for both funds that invest in Germany and funds that invest across Europe.
Domestic-only funds marked a quarterly return of 1.5%, the best performance since the third quarter in 2008; and the year-over-year return of 4.5% was the highest since the first quarter of 2009.
European-allocated funds in the second quarter had a year-over-year return of 2.9%, the best result in seven years.