IPD has released the results for the first half 2008 IPD Italian Pooled Property Fund Indices (Italian PPFI). The Index showed a total return of 1.4% in the 6 months to June 2008. The all pooled funds composite outperformed both Bonds (-1.6% return) and Italian Equities (-19.8% return), while property equities showed the weakest performance during the first half of the year (-32.6% return).
This brings the 12-month total return figure to June 2008 for Italian Pooled Funds Indices to 4.1%, a dramatic drop from the 9.5% annual return as at December 2007.
The seeded funds monitored by IPD have outperformed blind pool funds in the last six months (2.5% vs 0.0%), twelve months (7.1% vs 1.2%) and three years (10.9% vs 6.4%). This is mainly linked to higher gearing for seeded funds, which are also often sector specialists rather than balanced funds.
Davide Manstretta, Head of Fund Level Analysis at IPD, said: "These results show that the Italian property funds industry has not been left untouched by the impact of the global financial crisis, although all sub-indices are showing positive returns and the only Blind Pooled Fund Index reports a null performance for the last six months.
The Italian Pooled Property Fund Index has been welcomed by the whole Italian and global real estate industry as an important contribution to the transparency of the market. This second edition is richer than the first, which was published in April 2008, in terms of coverage and sub-indices breakdown, and we are sure fund managers, investors and the whole sector will benefit from the continuous developments of the Index. IPD thanks Assogestioni, the IPD Italian Consultative Committee and all fund constituents for the support provided to the development of this publication."