Property Funds’ Asset-Level Return Slows

Global property funds’ return declined by 90 basis points to 0.6 percent in the first quarter of 2020, according to the MSCI Global Quarterly Property Funds Index.

Quarterly Total Return

Source: MSCI

Interquartile range of asset level returns; all property

Source: MSCI

Global property funds’ return declined by 90 basis points (bps) to 0.6 percent in the first quarter of 2020 from Q4 2019, according to the MSCI Global Quarterly Property Funds Index. While U.K. funds recorded the lowest asset-level total return, funds in the Asia Pacific region saw both the largest quarterly decline (225 bps) and widest dispersion of returns. The interquartile range (25th to 75th percentile) in Asia Pacific widened to 5.1 percent from 2.5 percent. In general, the increasing interquartile range illustrated the widening performance variation across property sectors around market turning points.

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