Inrev launches online index tools

Non-listed real estate fund body Inrev is introducing two new index tools to enable fund managers to benchmark performance. Inrev argues that the ability to benchmark performance of funds is already essential in a normal market but even more so in today’s environment.

'It is of immense importance for investors and fund managers to use benchmarks as they are vital to evaluate and understand fund performance,' the organisation says.

One such benchmark is the Inrev Index which has developed over the last few years as the benchmark for non-listed European real estate funds. For the 2008 release, the Inrev Index release represented 224 funds and EUR 117 bn gross asset value (GAV). The headline return from the Inrev Index 2008 of -20% in local currencies clearly indicated the impact of the financial crisis.

The negative impact of leverage was also visible in the 2008 Index with highly geared funds (>60%) resulting in a performance of -39%. Performance by style showed that value added funds performed -33.4% in comparison to the 24.4% for core funds.

'It is clear that Inrev has already made some huge steps to create a benchmark for the industry. Last year was the first year that the Inrev Index was managed in house and the development of the Index continues to be a priority for Inrev in 2010, 'Inrev says.

'To increase the Index sample size we are about to introduce two new online tools with the aim of making it easier for fund managers, members and non-members.'

The full article appears in the January/February edition of PropertyEU Magazine. Click on the link below to subscribe