Value added funds have outperformed funds with a core strategy for the second quarter in a row, according a report on Q3 published by property fund industry body INREV.
Value added funds have outperformed funds with a core strategy for the second quarter in a row, according a report on Q3 published by property fund industry body INREV.
The latest INREV Quarterly Index covers 272 participating funds. Total returns for value added vehicles active in Europe came to 1.24% compared to 0.74% for core funds in the third quarter.
Closed end funds continued to outperform open end funds, posting total returns of 0.92% and 0.77% respectively.
INREV noted that while the performance for Southern Europe is improving, with returns at -0.91% compared with -3.58% during the previous quarter, Western Europe outperformed at 1.14%.
Industrial/logistics (1.76%) and retail (0.85%) were the best performing sectors in Q3, while office (-0.76%) and residential (-0.37%) both posted negative returns.
Star country performers in Q3 included the UK (2.23%), Finland (2.07%) and France (1%). Returns in Germany went from positive in Q2 to negative in Q3 (-1.08%), while the Netherlands showed a fifth consecutive quarter of negative returns (-0.21%). The negative return in Germany was driven by a couple of funds winding down.
Casper Hesp, director research and market information, INREV, said: 'A third successive quarter of positive returns should give the industry further cause for optimism. In particular the marked improvement for value added funds in Q3 is very encouraging.
'The continued strong performance of value added funds and significant variances in rates of return across countries and sectors suggest that investors will need to take a differentiated look at the market as we enter 2014.'
