New investors go for fund of funds, says INREV

The fund of funds sector is opening up the non-listed property funds market to new investors, according to new research by the non-listed real estate investor association INREV.

In a survey of fund of funds managers, 74% said that their vehicle included investors investing in the non-listed property market for the first time. The survey was completed by 18 funds of funds managers who manage 34 funds with an estimated EUR 14 bn of equity.

'This research shows that the fund of funds market can give both seasoned and first time investors access to the non-listed sector without having to put the necessary support infrastructure and resources in place,' said Dan Fulop, senior vice-president with Franklin Templeton.

INREV estimates the market has grown to EUR 20 bn since the first fund of funds launch in 2000.

Its research shows pension funds account for some 60% of investors in fund of funds, with insurance companies on 13%. The UK is the main origin of fund of funds, followed by the Nordic countries and the Netherlands.