Non-listed fund returns edge up in Q1: INREV

Total returns on non-listed funds increased slightly to 0.5% in the first three months of 2012 from 0.4% in the previous quarter, according to the latest figures from the European Association for Investors in Non-listed Real Estate Vehicles INREV.

Capital growth remained negative but increased to -0.2% in Q1 2012 from -0.8% in the final quarter of 2011, driven by increased returns in Continental Europe (up at -0.2% from -1.3% over the same period).

Italy was the worst performer in Q1 2012 with total returns of -0.9%, while Germany delivered the strongest performance at 0.8% (although this was a drop from the 1.4% registered in the previous quarter).

Core funds continued to outperform value added funds with total returns of 0.7% versus -0.3%

Casper Hesp, director of research and market information at INREV commented: ‘These returns offer a glimmer of positive news. The gains aren't huge but overall performance is moving in the right direction. Continental Europe has driven significant uplift in capital growth, which will no doubt give investors renewed confidence.’

He added that the continuing uncertainty in southern European economies is unlikely to help countries such as Italy, where total returns remain in negative territory and at the bottom of the table. 'Curiously, only Italy and multi-country funds displayed a shift northwards. While Germany topped the table for returns by country at 0.8% it showed a slide from 1.4% in Q4 2011,' he said.