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German open-ended real estate funds returned 0.1% in August while the sub index for funds predominantly invested in Germany returned 0.2% for the month and 2.6% for the last 12 months, according to the latest monthly report published by the Investment Property Databank.

The European-focused funds achieved a return of 0.1% in August and 0.2% over 12 months, while the globally invested funds bettered that with 0.2% this month and 0.3% over the last year.

The nine large funds managed by the investment companies Commerz Real, Deka Immobilien, RREEF and Union Investment average EUR 5.9 bn in size and make up 71% of the OFIX Index. Positive annual returns between 1.9% and 3.7% for these funds over the last year have stabilised the index, which records an overall performance for the past year of 0.4%.

'The four surviving providers of big public funds, with an investment volume of EUR 52.7 bn, represent the bulk of the market of German open-ended real estate funds still open for investment and disinvestment as at September 2012,' said Daniel Piazolo, managing director at IPD Germany. With a volume of EUR 400 mln, the smaller OFIX funds that remain tradable represent less than 1% of the market, he added.

Ten of the 22 OFIX funds are now in liquidation. With a fund volume of EUR 20.6 bn they represent 28% of the overall index. Each of the 12 funds which are still active achieved positive returns both last month and over 12 months, with a returns ranging between 1.9% and 5.0% for the last year. In August, six of the 10 funds in liquidation generated losses. Over one year, all 10 funds in liquidation performed negatively, with a spread of returns between -0.3% and -12.7%. 'We think that during the process of liquidation the negative impact of those funds on the OFIX Index will gradually decline,' added Sebastian Gläsner, head of fund services at IPD Germany.