The IPD Italy Biannual Property Fund Index saw returns come in at a negative 2.3% in the six months to June 2012, which is the second consecutive negative performance, bringing the annual figure to a negative 4.8%.
The IPD Italy Biannual Property Fund Index saw returns come in at a negative 2.3% in the six months to June 2012, which is the second consecutive negative performance, bringing the annual figure to a negative 4.8%.
In total, the Index reported a negative difference of 350 basis points compared to the same period last year.
The Index sample has remained unchanged as far as the number of funds is concerned at 39 closed-ended domestic funds. However, the total NAV (net asset value) of just below EUR 8 bn indicates a fall of 4.8% against the previous semester.
Considering the funds' property asset allocation, specialist funds were the worst performers with a six month return of a negative 2.8% while balanced funds on the other hand delivered -1.3%, the best result in this issue of the Index.
'We have isolated two main trends in the domestic property funds market, which highlight how Italian fund managers are tackling the situation; firstly most of the funds are undergoing a marked de-leveraging process,' said Giancarlo Cucini, Senior Analyst at IPD. 'Secondly, there is evidence of some re-pricing as a number of funds prepare for the wind-up phase.'
