Standard & Poor's: Private wealth managers cautious on property equities

Private wealth managers may be cautious when it comes to property equities funds, as rating agency Standard and Poor's notes industry experts are uncertain about the future of the investment vehicles.

Susan Sworn, lead analyst of Fund Services for the group, observed property market recovery has been "very, very uneven", claiming this is the reason for "sluggish" fund performance during the first six months of 2010.

Individuals managing clients' private wealth are likely to be employing similar tactics as real estate and commercial buildings have been subject to strong price fluctuations in many regions, with some built assets losing a significant amount of value since the start of the economic crisis in 2008.

As well as property equities funds, the group examines performance of numerous global sectors, including energy, environmental technology and precious metals.

Those with private wealth invested in gold saw the commodity reach record prices earlier in the week, following a report by the Wall Street Journal questioning the strength of European banking institutions. ADNFCR-2318-ID-800058432-ADNFCR