Unlisted property funds have continued their spectacular run of returns in the past 5 years, once again outperforming listed real estate trusts, direct property investments and the broader equities market – delivering a return of 13.8% throughout calendar year 2018.
Top performing unlisted property funds aimed at retail investors have returned 22% during the past 5 years, nearly 11 times what savers have earnt from basic savings accounts.
“Performance for the past five years has been fantastic,” says Dugald Higgins, head of property and listed strategies at Zenith Investment Partners, an independent research group.
Over the same 2018 period, direct property gave back a total return of 10.3 per cent, according to a quarterly report produced by Zenith Investment Partners, MSCI, the Property Funds Association and the Property Council of Australia.
Australian equities closed the 2018 year on a weaker note at negative 2.8 per cent, while the Australian real estate investment trusts provided a modest 2.7 per cent return.
For comparison, cash remained stable at 2 per cent and fixed-income returns held strong at 6.8 per cent.
Over the past five years, unlisted property has delivered long-term value for investors, with total returns at 22 per cent annually, more than three times stronger than Australian equities at 5.6 per cent.
In 2016, CFMG Capital launched the CFMG Land & Opportunity Fund, an unlisted property fund paying fixed returns of 12% per annum net of fees. The fund has operated seven land sub-division projects in that period valued in excess of $250million.