The Association of Real Estate Funds (AREF)'s Investment Quarterly (IQ) for Q2 2010 reveals a net asset value of £30.5 bn (EUR 37 bn) for UK unlisted pooled property funds (PPFs), up £9.5 bn on this time last year.
The Association of Real Estate Funds (AREF)'s Investment Quarterly (IQ) for Q2 2010 reveals a net asset value of £30.5 bn (EUR 37 bn) for UK unlisted pooled property funds (PPFs), up £9.5 bn on this time last year.
AREF attributed the increase to 'excellent performance and significant net inflows'. The Investment Quarterly examines trends in the UK unlisted pooled property funds (PPFs) industry through data provided by 66 member funds.
In Q2 2010, PPFs raised £1.4 bn of new money, continuing the positive flows of the previous two quarters. Money raised from new investors was broadly in line with that raised from existing investors in Q2 2010. Net flows were £900 mln this quarter, bringing the total for the last 12 months to £5.8 bn, the highest 12-month figure on record.
The All-pooled property fund index saw a positive total return of 3.4% in Q2 2010, down from 5.9% in the previous quarter. During the 12 months to June 2010, PPFs delivered a positive return of 22.9% and over 10 years an annualised return of 5%.
The weighted average PPF yield was 4.32% in Q2 2010, down slightly from 4.6% in the previous quarter.
Looking at retail investment in pooled property funds, the net asset value of Authorised Property Unit Trusts (APUTs) reached £7.8 bn in Q2 2010, back to the levels last seen in 2007. The pace of new capital raised by retail investors decelerated by 36% on the previous quarter, to £734 mln in Q2 2010.
John Cartwright, AREF Chief Executive, said: 'Quarter 2's figures show a continuation of the positive flows seen in the previous two quarters, with net asset value up £9.5 bn on this time last year. The highest inflows on record for the past year reveal a picture of excellent annual performance and ongoing investor confidence in pooled funds as an effective way of accessing property returns.'