MSCI Inc. has recorded a global property fund return of 10.6% at net asset value (NAV) during the 12-month period ending in June 2016 as indicated in the IPD Global Quarterly Property Fund Index.
The NAV return of 10.6% is a decrease from 12.5% recorded in March 2016. The Index reached a four-year high of 13.5% in December 2015.
The total return in the quarter to June 2016 stood at 1.8%, compared to 1.9% recorded in March 2016. At the regional level, Asia Pacific recorded a total return of 2.4%; North America, 2.0%; and Europe, 0.5%. Both Asia Pacific and North America returns outperformed equities, which returned 1.5% during the period.
At the asset value, the total return for the 12-month period ending in June decreased to 10.5% from 11.7% recorded in March.
Ken Greguski, Executive Director, MSCI, commented: “We continue to see gradual moderation in the performance of property funds after the Index recorded a four-year high at the end of 2015. However, we are still seeing double-digit returns, which reflects the reliability of real estate investment.”
The IPD Global Quarterly Property Fund Index is based on a sample of 90 listed, core and open-ended funds across the globe. The Index is the only quarterly dataset tracking core real estate investment performance globally with a total net asset value of close to USD 291.5 billion and a total asset level capital value of about
USD 356.1 billion as at June 2016.