The Q2 2024 ANREV index included data contributions from 78 funds with a total gross asset value of US$139.4 billion.

Key highlights:

• ANREV’s All Funds Index posted a total return of -2.83% in Q2 2024, down 112 bps from -1.71% posted in Q1 2024.

• Core funds posted the only negative total returns of -3.48%, underperforming both opportunistic and value-added funds which reported 1.25% and 0.03% respectively.

• Closed-end funds with a total return of 0.22% outperformed their open-end counterparts which posted -3.50%.

Further details of the sub-indices which cover different fund styles and various geographies can be found in the full report.

We would like to thank all the funds that contributed data, and look forward to your continued support in the next round of data collection. If you have any questions about the index or wish to take part in this industry-led initiative, please contact Daisy Huang or Eileen Chiu.

The ANREV Australia Core Open End Fund Monthly Index (ACOE) saw a total return of 0.26% in August 2024. The ACOE includes 17 funds with a total GAV of AUD 114.18 billion.

The ACOE Index also reports data on geographic allocation by sector.

Please contact Daisy Huang or Donald Lam if you have any questions regarding the Index.

Around the Australia conference, KordaMentha hosted a round table in Melbourne on behalf of the ANREV Debt working group where institutional investors and investment managers shared views on the market from composition to trends and risks, regulation, investment opportunities and experiences on accessing the market in the current environment

ANREV, INREV and NCREIF are exited to release the first global comparison of the Total Global Expense Ratio (TGER). The publication is an important step in enhancing transparency on the total fees and vehicle costs for open-end diversified core equity non-listed real estate funds (ODCE).

The study includes the TGER for 46 funds out of the 49 funds included in the Global ODCE Index, representing a total gross asset value (GAV) of USD 359 billion (98% of the Global ODCE Index’s GAV) as of the end of 2023.

Key highlights include:

• The average reported Total Global Expense Ratio (TGER) for Global ODCE funds for 2023 was 0.82% based on GAV and 1.18% based on NAV
• The largest driver of regional differences between the TGERs is vehicle costs. They are lower for US funds which are generally larger in size and invest in a single country while in the other regions funds operate in multiple countries
• Performance fees are not commonplace amongst ODCE funds, with only a handful of funds reporting using them in 2023

ANREV, INREV and NCREIF present the sixth edition of the Global ODCE (Open End Diversified Core Equity) Fund Consultation Index, consisting of 49 funds with a combined total gross asset value of US$ 349.7 billion. 

Key highlights include: 

• The Q2 2024 Global ODCE reported a net total return of -0.97%, marking the eighth consecutive quarter of negative performance. On a 1-year rolling annual basis the total return stands at -7.36%.
• Europe outperformed the other regions, posting the only positive returns with 0.19%, followed by the US with -0.66%, and -2.43% in Asia Pacific. All regions saw a quarter-on-quarter increase in performance.
• On a five-year annualized basis, the Global ODCE Index shows an aggregated total return of 1.49%. The US posted the highest annualized total return of 2.27%, followed by Asia Pacific with 1.83%, and 0.04% in Europe.
• At 0.77% in Q2, the accrual-based income return reached its highest level in three years. On a 1-year rolling annual basis, the income return stands at 3.05%.

 Please contact Amélie Delaunay, Daisy Huang or Eileen Chiu should you have any questions regarding the Index.

The ANREV Australia Farmland Index provides financial performance of 61 different properties of market value over AUD 2.2 billion in farmland.

ANREV Australia Farmland Index returned -1.66% on a 12-month rolling basis in Q2 2024.

On an annualized rolling return basis, the income return was at 2.00% in Q2 2024.

Capital growth was at -3.60% in Q2 2024 on a 12-month rolling basis.

We would like to thank all the managers for their data contribution.

If you have any questions about the Index, please contact Daisy Huang or Donald Lam.

Over the last years, the business model of institutional funds of funds managers has been changing, with a notable shift towards more diverse investment portfolios. The shift away from predominantly fund investing leaves ‘funds of funds’ terminology no longer fit for purpose when it comes to capturing this investor segment. As of 2024, INREV’s and ANREV’s Funds of Funds Study and Funds of Funds Universe have been renamed to Multi Manager Study and Multi Manager Investment Solutions Universe, respectively. 

• Evolution of multi managers as an investor across the real estate investment spectrum
• Multi managers’ increasingly diverse allocation of capital away from non-listed funds
• Non-core allocations increased to a record 27% with a focus on value added strategies
• Structural shift outside of the traditional sectors

The performance data presented in this report is not intended to serve as a benchmark and should be used for research and information purposes only.

The Q2 2024 ANREV ODCE (Open End Diversified Core Equity) Fund Index results were released on 28 August 2024 and posted a net total return of -2.43%, up 147 bps from -3.90% posted in Q1 2023.

Key highlights:

• Capital growth increased by 143 bps to -3.18%, while the distributed income return stands at 0.75%.
• After taking out the currency impact of -1.23%, the index delivered a Local Currency Equivalent Net Return of -1.20%.
• The index features 8 funds, with a total GAV of US$20.6 billion as of the second quarter of 2024.

For any feedback and comments, please contact Daisy Huang or Eileen Chiu.