PRESS RELEASE 19 October 2009 MercerIPD combine to launch by maclaren1


									PRESS RELEASE 19 October 2009

Mercer/IPD combine to launch improved index on Australian
Wholesale Property Funds

A wholesale property index launched by global investment consulting firm Mercer
and IPD the global provider of property indices and benchmarks will provide greater
transparency for institutional investors who manage unlisted real estate investments.

The Mercer/IPD Australian Pooled Property Fund Index replaces the current Mercer
Unlisted Property Funds Index and the IPD Australian Pooled Property Fund Index,
launched by IPD in August. The new index is part of an international suite of Pooled
Property Fund Indices (PPFIs) published by IPD and augments Mercer’s set of
Australian investment surveys.

Dr Anthony De Francesco, Managing Director, IPD said “We are delighted to be
working closely with Mercer. The impetus for this co-operation has been a desire for
truly international comparisons of real estate performance to be made. Together we
see there being great potential for this measurement of wholesale fund performance
to be expanded, for sector specific sub-indices to be created, and for further
transparency for investors to be generated.”

Ms Jennifer Johnstone Kaiser, Mercer’s Head of Real Estate Asia Pacific said
“Combining forces with IPD enables us to further develop the index and provide our
clients with a wider range of unlisted property performance data, therefore a more
By comparison with other asset classes over the year, Australian pooled funds are
continuing to outperform the listed property funds sector which returned -23% but
underperformed the Australian equities market, which has rebounded strongly with
the ASX All Ordinaries posting an annual return of 7.4%.

The funds reviewed by the fund index have generated a significant spread of returns
for the 12 months to September. All have recorded a negative returns for the year
with the best performing fund returning -0.7% and the worst -23.2% with a median of

On a quarterly basis the return to September 09 while still negative at -0.5% showed
a marked improvement on the low point of -6.3% for the June quarter.

John Garimort, Director IPD said: “While these results highlight the ongoing difficult
conditions facing managers of unlisted property funds, the recent improvement in
performance reflects the underlying stabilization of asset values in the Australian
direct property market. We have seen capitalisation rates halt their upward trend
between June 09 and September 09 data, with lower effective rents having an
impact, but not significantly material as yet.”

Negative returns for Institutional Unlisted Property Funds in Europe and
Australia continue, says IPD

As a part of IPD’s global coverage of the performance of property funds and
investments this initiative with Mercer now means that global comparisons between
countries can be made on an equal footing.

IPD also released information on the performance of Pooled Property Funds in
Europe. European property funds have been in negative territory since December
2007, it has been negative for Australian funds since September 2008. While the
relevant data for these funds is June 2009 the following table provides the
comparative returns.
Total Returns for Selected Regional Property Funds
In Local Currencies at JUNE 2009

All European pooled property funds index             -10.7%
Notes to editors:

The IPD Pooled Property Fund Index is part of a family of international fund level indices,

covering Australia, the UK, Italy, Germany and Europe. IPD thanks all fund constituents for

the support provided in the development of this publication.

The IPD European Pooled Property Fund Indices are a ne                                        u422(s)-6.3339s,en
For further information contact:
Anthony De Francesco Managing Director IPD Australia and New Zealand
+61 (0)3 9654 6400,

John Garimort, Director IPD Australia and New Zealand
+61 (0)3 9654 6400,

About Mercer:

Mercer is a leading global provider of consulting, outsourcing and investment services,

serving over 25,000 clients worldwide.

Mercer consultants help clients maximise the effectiveness of their employee health, welfare

and retirement programs, and optimise workforce performance while managing costs. The

firm provides customised administration, technology and total benefit outsourcing solutions.

Mercer’s investment services include global leadership in investment consulting, retirement

plan design and governance, and multi-manager investment management. Mercer’s global

network of more than 18,000 employees, based in more than 40 countries, ensures

integrated, worldwide solutions for clients who wish to establish global policies and

procedures while allowing for the flexibility to accommodate local cultural, legal and regulatory

requirements. Our locally based professionals are also available to serve mid-size companies

and to address country specific issues and opportunities.

For more information, visit

Danielle Murdolo
Media Consultant to Mercer - Buchan
Tel +61 3 9866 4722
Mob + 61 40 368 8980

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