Italian pooled property funds delivered positive returns for the second consecutive year in 2010, at 1.7%, a solid improvement on the 0.2% booked in 2009, according to the Italian Pooled Property Fund Indices (Italian PPFI).

The H2 total return, of 1.5%, accounted for almost all of the growth, as the first half of 2010 saw declining returns that fell to 0.2%. Comparatively, returns for direct Italian commercial property in H2 were 2.7% as measured by the IPD Italy Bi-Annual Index.

The Italian PPFI universe - made up of 37 funds, 16 of which are 'blind pool' and 21 'seeded', with an aggregate net asset value of EUR 8.7 bn - continued to see divided returns. For the ninth consecutive year seeded funds outperformed blind pool funds, by 300 basis points, returning 2.9%, to -0.1%. In H2 the gap narrowed as the overall market improved, with blind funds delivering 0.7%, and seeded funds 2.0%.