This article is from the Australian Property Journal archive
GLOBAL property securities fund have delivered negative returns over the past three years despite the rebound in the market, according to Adviser Edge.
According to the Adviser Edge Global Property Securities Fund Review, the three-year returns fell within a range of 6.7% and were all negative, driven by the severity of the collapse in the global property securities markets over 2008 and 2009.
The Macquarie Hedged Global Property Securities Fund had the highest return (-12.4%), while the RREEF Global Property Securities Fund had the lowest (-19.1%).
On a one-year return basis, the best performer was the Resolution Capital Global Property Securities Fund, which delivered 37.9%. The weakest fund was the Invesco Wholesale Global Property Securities Fund, which returned 19.2%.
Adviser Edge said the positive returns across the sector are a distinct contrast to the previous 12 months, where strong negative returns dominated.
However Adviser Edge said it was disappointing that the majority of funds failed to deliver excess returns in relation to the benchmarks over the one-year period to December 2009.
The Resolution Capital Global Property Securities Fund (10.4%), AMP Capital Global Property Securities Fund (5.5%), and the BT Wholesale Global Property Securities Fund (1.4%) were in fact the only funds to deliver excess returns over this period.
On this basis, the worst performing fund was the Zurich Investment Global Property Securities Fund, returning a negative excess of -10.4% over the year. Over a three-year period, the result was very similar, with those funds already mentioned exhibiting positive excess returns, except for Resolution Capital Global Property Securities Fund, which as yet has no three-year track record.
The Invesco Wholesale Global Property Securities Fund (Hedged and unhedged) displayed a slight excess on this basis, while the Macquarie Hedged Global Property Securities Fund returned 2.3% in excess of the benchmark over this time. All other Funds reviewed failed to generate three-year returns in excess of the benchmark over this time.
Twelve funds participated in the review and eight received a rating of four stars or higher. Three funds were upgraded, four ratings remained unchanged, and three were downgraded. Additionally, two funds were rated for the first time. The median rating was 4.0 stars, an increase from the previous 3.75 stars.
For the first time, Adviser Edge has conducted research on an index Fund, the Vanguard International Property Securities Index Fund. This fund rated well, scoring 4 stars.
In the past, Adviser Edge has also rated the Fidelity Global Property Securities Fund, the UBS Global Property Securities Fund, the Challenger Wholesale Global Property Securities Fund, the EQT SGH LaSalle Global Listed Property Securities Trust and the Colonial First State Wholesale Colliers Global Property Securities Fund.
However, these funds declined to be rated on this occasion, and therefore any previous ratings are no longer current.
Australian Property Journal
