As shown in U.S. dollar terms in the tables on the following page, global property securities, as measured by the UBS Global Real Estate Investors Index, rose 7.0% on a total return basis in the first quarter of 2013. Asia ex-Australia was the top-performing region for the quarter and one-, three-, and five-year trailing periods. Volatility within the UBS Investors benchmark has been somewhat higher in North America than in the other regions over the past ten years.
The UBS Global Investors Index outperformed the FTSE EPRA/NAREIT Developed Index by 71 basis points in the first quarter; the Hong Kong government implemented new policies targeting investment demand across all property types and the Chinese government called for continued tightening on the property market, policy issues that weighed on developers during the quarter. (The FTSE EPRA/NAREIT Developed Index is essentially the sum of the UBS Investors and UBS Developers; most of the Developers are in Asia ex-Australia.) This was a reverse from the trailing one-year period when loose monetary policies in Asia benefited the developers and helped the EPRA/NAREIT Developed benchmark outperform the UBS Global Investors benchmark. lternatively, the annualized returns of the UBS Global Investors benchmark were greater than those of the EPRA/NAREIT Developed benchmark over the three- and five-year trailing periods, driven in large part by the much stronger market recovery in North America and Australia in the period immediately following the financial crisis. On a rolling ten-year basis, the Developers have experienced higher volatility than the Investors, but the covariance of the returns has been such that the overall volatility of the FTSE/EPRA NAREIT Developed Index has been roughly equivalent to that of the UBS Global Investors Index.
Source : AEW Asie