There has been a marked recovery in the performance of institutional European pooled property funds over the 12 months to June, it has been claimed. The International Property Databank (IPD) reports that the funds delivered an 8.3 per cent local currency return over the period.
This is in comparison to the -18.6 per cent over the previous year to June 2009. IPD claims that the bulk of the recovery was seen in the first six months of 2010 and, the body states, this reflects the improvements seen in European property markets over that period.
Cameron McVean, head of fund services at IPD, said: "These figures illustrate a substantial recovery for the European pooled property fund market. Although lower than the performance achieved during the bull market years of 2005 and 2006, the headline 8.3 per cent annual return marks a return to more consistent performance inline with the first half of the last decade."
Mr McVean added that fluctuations in the currency market, changing investment strategies and improving market conditions had all contributed to the recovery.