UK - Property generated a loss of 21% for the WM UK Pension Fund and Charity Fund universe in 2008, according to preliminary results released by State Street Investment Analytics.
The results were calculated from data about the property values, investment activity and income of over 200 UK pension funds with a total of £29bn (€32.3bn) of property assets to 30 September 2008, said Graham Wood, senior consultant for WM Company, part of State Street Investment Analytics.
"Real Estate has been affected by the same problems that have been affecting most other investment markets at the moment. It has been a very unpleasant period for virtually all investments, with exception of bonds," said Wood.
Interestingly, despite the losses he believes unlikely pension funds are unlikely to alter their real estate investment strategy any time soon.
"Because pension funds are such long-term investors I would be surprised if they were going to make short-term decisions based on what happened last year, so I wouldn't envisage any enormous alterations in their investment strategy," said Wood.
"I expect them, if they are invested in property, to remain invested and if they are not invested in property they may well be looking at property carrying better potential now than it did a couple of years ago," he added.
State Street collects aggregate results from its client base rather than detailed results for the different real estate sectors like retail, commercial and industrial.
State Street's Investment Analytics calculates performance for over 1,200 customers around the globe with asset volumes exceeding $5.5tn.
Its parent company, State Street Corporation, provides financial services to institutional investors and had $1.7tn assets under management to the end of September 2008.