Nordic property funds rebound in fourth quarter – IPD
Nordic property funds returned 2.3% in the last quarter of 2011, recovering from a loss of -1.7% in the third quarter, according to the IPD Nordic Property Fund Index.
The index returned 5.4% over the full year, down significantly on the 10.6% return in 2010. However, this was above the five-year average return of -0.2%.
More than three-quarters (75%) of the funds measured saw positive returns over the period, a turnaround from the third quarter 2011, when just 25% did so.
Håvard Bjorå, director at IPD Norden said: “It is encouraging to see Nordic property fund returns move into positive territory, though results from the last 6 months reflect the uncertainty surrounding the current economic climate, and are impacted by currency movements.”
Currency has an impact because the index is denominated in euros, but both the Swedish and Norwegian currencies appreciated against the euro during the period reported. The index consists of 16 property funds investing primarily into Denmark, Sweden, Norway and Finland. Together the funds had a combined net asset value of €3.4bn and gross asset value of €7.9bn at the end of December 2011.