The Asian and European Associations for Investors in Non-listed Real Estate Vehicles (ANREV and INREV) and the National Council of Real Estate Fiduciaries (NCREIF) have published the initial results of their inaugural joint global index for industry consultation.
The Asian and European Associations for Investors in Non-listed Real Estate Vehicles (ANREV and INREV) and the National Council of Real Estate Fiduciaries (NCREIF) have published the initial results of their inaugural joint global index for industry consultation.
The Global Real Estate Fund Index, launched at the ANREV Annual Conference, measures the performance of non-listed real estate vehicles on a global basis.
The feedback received will help to ensure the final index is as comprehensive and useful as possible, ahead of its official launch in April 2014, the organisations said.
Findings of the current version of the index include positive total global returns of 7.64% annualised over three years; average one-year total returns of 5.82% fuelled by strong returns in the US (11.33%) and Asia (8.64%), with Europe lagging behind (0.47%); average returns increases during the first two quarters of 2013 reflecting improved market conditions.
Current data relate predominantly to core funds. However, future releases of the index will seek to increase the level of performance data from value added and opportunity funds.
'Investment strategies and markets, including real estate, are becoming more and more globalised, so it makes sense for our industry to produce an index that offers a global perspective,' said Casper Hesp, director, Research and Market Information for INREV. 'This initiative also helps to position non-listed real estate funds on a more equal footing with other asset classes and reinforces their relevance and value for instituti onal investors as part of a balanced portfolio.'
The 363 participating global funds have a combined gross asset value of $420 bn.
