Many fund managers are approaching property equity funds with caution as questions are asked about the sustainability of the economic recovery.
This is according to Standard & Poor's Fund Services, which reviewed the sector during the first half of this year.
Susan Sworn, lead analyst at S&P Fund Services, said: "The first six months of 2010 have proven sluggish in terms of fund performance, but property markets themselves saw some recovery at the start of the year."
She added that there were some differences in how managers reacted to challenging markets, including Fidelity Funds Global Property Funds, which had focused on stocks hit by market concerns.
Last month, S&P launched its Factor Index Series, which measures the risk premium that exists between financial markets and asset classes.
It aims to give investors the chance to track funds between a long and short sub-index.
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