Funds of funds deliver 6.7% returns in 2018

Increase_graphFunds of funds saw a sixth consecutive year of positive performance in 2018, delivering returns of 6.7%, according to the Anrev, Inrev and NCREIF Fund Manager Survey 2019. The figure is down from 2017 returns of 8.4%. In terms of regional funds of funds investing, Asia Pacific delivered the lowest returns of 1.3 last year – a sharp decline from 12.8% in 2018. Funds of funds with a European strategy delivered returns of 6.6%. The survey showed that at least one in five institutional investors plan to increase or maintain their allocation to funds of funds over the next two years. Globally, total real estate assets under management (AuM) reached $31.5 billion – a rise on the $25.3 billion average since 2016. “This year’s study further strengthens the funds of funds’ proposition as an important vehicle within the non-listed real estate space, with continued positive returns for investors,” said Amélie Delaunay, director of research and professional standards at Anrev. “Given their diverse investment in funds, joint ventures, club deals and debt funds, funds of funds have become excellent conduits for global real estate investment strategies, offering significant sector and regional diversification options,” Delaunay added. ©2019 funds global asia

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