Balanced pooled funds outperformed specialist funds for the first time in two years in the third quarter, according to the AREF and IPD.
The partners’ UK Pooled Property Funds Index revealed that specialist fund returns slid by 70 basis points quarter-on-quarter to 1.3%, while balanced funds saw a shallower decrease to 1.7%.
The all-property fund return for the three months to September was 1.5% – down from 1.9% the previous quarter.
The Charities Property Fund was the best performing balanced fund, returning 2.8%. This was followed by ING Lionbrook Property Fund and The Local Authorities’ Property Fund, which both delivered 2.4% returns.
The poorest performing balanced funds still produced positive returns compared with the worst performing specialist funds, which were well into negative territory.
The bottom place was taken by the APIA Regional Office Fund on -5.2%, followed by The Junction on -4% and The Mall Fund on -3.1%.
This dragged down the average return, despite a strong performance by the leading specialist funds. The Henderson Central London Office Fund led the group, returning 4%, followed by WELPUT on 3.7% – both outstripping the top-placed balanced funds.
