Global property delivered the best returns among major asset classes during the March quarter but most active fund managers that invest in the sector produced disappointing results, according to a new report.
Research house Morningstar’s latest managed fund performance league tables showed that global real estate investment trusts (REIT) were buoyed by optimism about the prospects for world growth, with the UBS Global Investors Index surging 5.63 per cent.
But only four of 23 products surveyed were able to deliver superior returns.
The least impressive was the Invesco Wholesale Global Property Securities, which added 2.41 per cent, while Zurich Investments Global Property Securities and UBS Global Property Securities also lagged the index with returns of 2.55 and 2.59 percent, respectively, the report said.
The top performing funds were RREEF Global ex-Australian Property Securities and EQT SGH LaSalle Global Listed Property Securities, which generated returns of 6.17 per cent and 5.90 per cent, respectively.
RREEF benefited from its asset allocation calls, in particular underweight positions to Japan and Europe, and also stock selection, Morningstar senior research analyst Julian Robertson said.
The report also revealed that while global equities performed well during the quarter with returns of 3.89 per cent, only 21 of 71 unhedged large cap global share strategies managed to outpace the index.
The worst performers in the category included Perennial Global Shares High Alpha and Platinum International Brands, losing 0.75 per cent and 0.59 per cent, respectively.
