Real estate funds returned 3.8% in the three months to December 2014, on a par with the 3.9% achieved in the third quarter of the year.
This is the finding of the most recent AREF/IPD UK Quarterly Property Fund Index, which also found that returns from direct commercial property stood at 4.4%.
Shopping centre and retail warehouse funds were found to not be performing so well, with seven out of eight funds returning less than 20% compared with an industrial spread of 19.1-30%.
Phil Tily, executive director, MSCI, said: “Balanced funds performed strongly throughout 2014, showing a total return spread between 11.4% and 24.2% over the course of the year. Long income, low risk funds returned a more modest 9.9%, which is not surprising given the nature of the current rising market.”
