12. Juli 2012 
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German open-ended real estate funds show two sides
In June German open-ended real estate funds returned -0.1%, repeating the weak performance of the previous month. The sub-index OFIX Germany performed significantly better than sub-indices for the European and global funds. It returned 0.2% for the month of June and 0.5% for the 2nd Quarter of 2012, whereas the returns for the European and global funds were negative in both periods. Only when one takes a ten-year perspective does the OFIX Europe surpass OFIX Germany, with an annualised return of 3.1% compared to 2.6%.
These are findings of the latest monthly report, for June 2012, by IPD.
Over the past year, 12 of the 13 funds that are open for share redemptions achieved positive returns between 0.3% and 5.3%, while funds in liquidation generated losses between -12.0% and -1.1% over the period. „The fact that all of those funds in liquidation performed worse than the weakest performing active fund once again shows that winding-up and declining returns go hand in hand,“ says Sebastian Gläsner, Head of Fund Services at IPD.
The eight funds in liquidation account for €21.5 billion net asset value, just less than 29% of the total market of German open-ended real estate funds available to private investors. Daniel Piazolo, managing director of IPD in Wiesbaden, adds: „Over two thirds of the market is not in crisis, either in terms of fund flows, or return trends. For investors in the funds being wound up however, the all-clear cannot be given, since the weak returns witnessed in previous months are still persisting.“
These are findings of the latest monthly report, for June 2012, by IPD.
Over the past year, 12 of the 13 funds that are open for share redemptions achieved positive returns between 0.3% and 5.3%, while funds in liquidation generated losses between -12.0% and -1.1% over the period. „The fact that all of those funds in liquidation performed worse than the weakest performing active fund once again shows that winding-up and declining returns go hand in hand,“ says Sebastian Gläsner, Head of Fund Services at IPD.
The eight funds in liquidation account for €21.5 billion net asset value, just less than 29% of the total market of German open-ended real estate funds available to private investors. Daniel Piazolo, managing director of IPD in Wiesbaden, adds: „Over two thirds of the market is not in crisis, either in terms of fund flows, or return trends. For investors in the funds being wound up however, the all-clear cannot be given, since the weak returns witnessed in previous months are still persisting.“
