Nordic property fund returns rebounded in Q4 2011, delivering 2.3%, compared to -1.7% in Q3, according to the IPD Nordic Property Fund Index.
The index revealed a 5.4% return for 2011, a significant reduction on the 10.6% delivered in 2010, but well above the five-year average of -0.2.
Over 75% of the funds measured delivered positive returns in the fourth quarter, following a dire Q3, where only 25% of funds saw positive returns.
The IPD Nordic Property Fund measures Net Asset Value total returns from one valuation to the next and is released on a quarterly basis. This is the fourth release.
"It is encouraging to see Nordic property fund returns move into positive territory, though results from the last six months reflect the uncertainty surrounding the current economic climate, and are impacted by currency movements," explained Håvard Bjorå, Director at IPD Norden.
The Swedish and Norwegian Krona have appreciated against the Euro during the fourth quarter, which is likely to have had a positive impact on IPD NPFI's return, since the index is Euro denominated.
IPD Nordic Property
The IPD Nordic Property Fund Index sponsored by Ernst & Young - consists of 16 property funds with a combined Net Asset Value of 3.4 billion and a Gross Asset Value of 7.9bn Euros at December 2011. The gross loan-to-value ratio for the 16 funds was 57%.
The IPD Nordic Property Fund Index is made up of funds primarily investing into Denmark, Sweden, Norway and Finland. It gives investors an unrivalled view into the unlisted fund sector in the Nordic region and aims to increase the transparency and credibility of the property fund market. IPD intends to increase the number of contributing funds in the index with each release.