Italian property funds delivered a negative 5.8% return last year, with the second half of 2012 recording a lower result of -3.7% compared with -2.2% H1.
Based on the IPD Italy Biannual Property Fund Index this represents the second negative performance in a row and the lowest total return in the index series.
Italian real estate closed-ended funds underperformed compared with other asset classes. Equities posted a1 3.3% and a 11.7% (MSCI Italy) return respectively while real estate equities were at 29% and 27.7%. Bonds registered a 13% and a 24.8% performance (JP Morgan GB Italy) respectively.
“Italian real estate funds have indeed suffered the effect of a prolonged economic crisis,” said IPD country manager for Italy, Luigi Pischedda.
“However, when put into perspective and blended in the mix of the broader marketplace with its investment options, property funds exhibit some strength, and the pressure of the economic crisis eases off when we look at a longer-term horizon.”
