Portuguese index posts positive performance in 2011

Portuguese property funds delivered a positive performance of 1.2% in 2011, according to the APFIPP/ IPD Portugal Property Fund Index just released.

The index is based on a sample of 37 property funds with a combined total value of assets under management of EUR 7 bn. It reports annual returns, released on a quarterly basis.

IPD has partnered with APFIPP to bring to the Portuguese market a property fund index which tracks the performance of open and closed-end funds to an internationally accepted methodology.

The first results for the year 2011 show a positive performance for all funds, with an annual total return of 1.2%. The open ended property funds stand out with a positive performance of 2.1%, while closed ended funds recorded a negative total return of -1.2%.

These results were expected given the current market context, mainly due to the fact that open ended funds are largely focused on investment in income properties, IPD said, while closed ended funds tend to be more exposed to property developments.