Unlisted property funds returned 2.2% in the three months to September 2017, consistent with the previous quarter, according to the IPD UK Quarterly Property Fund Index.
The Association of Real Estate Funds-sponsored figures show that returns for direct commercial property stood at 2.7% over the period, while quarterly returns for funds steadily accelerated over the first three quarters of 2017, from the low of -0.8% recorded in September 2016, reflecting the impact of the Brexit referendum.
Funds returned 8.6% year-on-year to September 2017, an acceleration from 5.4% recorded in June 2017 and the low of 2.3% in December 2016.
Ken O’Brien, executive director, MSCI, which produces the survey, said: “Although recent quarterly returns have been slightly below those recorded pre-Brexit referendum, the slowdown that immediately followed seems to be fading away.”
Balanced funds were the best performers over three months (2.4%) and 12 months (9.3%). Long income funds followed with 2.2% quarter-on-quarter and 8.8% year-on year. Specialist funds posted three-month returns of 1.8%.
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