Another step for transparency: Further clarity around AUM

Within the non-listed real estate industry, the definitions, calculations and uses of ‘Assets Under Management’ (AUM) vary significantly. As such, INREV, ANREV and NCREIF PREA Reporting Standards together with the Global Standards Steering Committee (SSC) have conducted a high level research to assess the current definition and use of AUM including calculation methods. The research results provide a clear overview of each component considered by investment managers used to calculate AUM and reflects the main differences in approach.

As a next step, the SSC intend to release a disclosure tool to facilitate reporting of the main AUM component. 

The fifth consultation release of the Global IRR Index includes 319 funds with non-core strategies, comprising of 276 value added and 43 opportunity funds.

Key highlights:
> This Global IRR Index release features 77 Asia Pacific, 105 European and 137 US funds
> Funds launched in 2017 and 2018 delivered average IRRs of 7.0%, the weakest performances of all funds launched post 2009

The seventh net / gross return report shows a 3-month total gross return of 2.08% for the period between January and March 2021.
 
The net / gross return report is a supplementary report to the ANREV Australia Core Open End Fund Monthly Index (ACOE) published one month after every quarter showing aggregated gross returns of the 19 ACOE funds.

Please contact Daisy Huang or Darren Cheung if you have any questions regarding the Index.

The ANREV Australia Core Open End Fund Monthly Index (ACOE) saw a total return of 1.14% in March 2021. The ACOE includes 19 funds with a total GAV of AUD 113.77 billion.

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

Please contact Darren Cheung or Daisy Huang if you have any questions regarding the Index.

ANREV has launched the fifth release of the ANREV ODCE Asset Level Performance Consultation Report.

The ANREV Asset Level Performance Report is not an index as the coverage is limited to assets held by 7 funds with a pan Asia core open end strategy.

The ANREV Asset Level Performance Report results are based on asset level data that is provided to ANREV directly from managers. Data collection starts immediately after a quarter has ended for a period of up to 6 weeks after quarter end.

Please provide feedback and comments to Justin Wong or Amélie Delaunay.

With the popularity of the Asia Pacific non-listed real estate market continuing to increase, it is timely to assess how much capital is entering the market and what this figure represents on a global basis.

The Capital Raising Survey was first launched in 2014. This survey gives an insight into capital raising activities within the non-listed real estate industry by region, product type and investment strategy. The non-listed real estate products include separate accounts, joint ventures, club deals, funds of funds and non-listed real estate debt products. The report offers detailed insights into global and regional capital raising figures.

The 2021 survey attracted the participation of 127 fund managers from 26 countries across Asia Pacific, Europe and North America.

Capital was sought for 699 vehicles which equate to a minimum of US$150.7 billion of new equity raised for investments into non-listed real estate.

The Asia Pacific region attracted US$26.2 billion of new capital.

ANREV has launched the Q4 2020 IRR Index by vintage. The IRR Index measures performance of value added and opportunistic non-listed closed end funds investing in Asia Pacific.

The Q4 2020 sample of the ANREV IRR index includes 77 funds. 

We welcome any questions or comments - please email Daisy Huang or Kip Kong.

In March’s issue, we have included:     
              

Australia

• New foreign investment laws in place from 1 January 2021
• CORIE framework launched to test cyber resilience of Australia's financial services industry
• ASIC issues information sheet on managing conduct risk during LIBOR transition

Cayman Islands

• DITC Economic Substance update – January 2021
• Cayman Islands and the FATF "Monitoring List"

China

• China and EU reach agreement in principle on investment

Hong Kong

• Bill providing tax concessions for carried interest distributed by eligible private equity funds operating in Hong Kong gazetted
• SFC previews new electronic licensing services
• SFC shares inspection findings of anti-money laundering/counter-financing of terrorism controls and compliance practices

Japan

• FSA announces publication of first report by Working Group on Capital Market Regulations of Financial System Council

Korea

• FSC to promote role of securities firms in corporate financing and venture capital market

Singapore

• Guidelines on Environmental Risk Management for Asset Managers
• MAS announces launch of grant scheme to support green and sustainability-linked loans

Lastly, we would like to thank our committee who helped putting together the newsletter. Details about this committee can be found here.

Welcome to the March 2021 update of the Global Real Estate Fund Index (GREFI). It is an index showing the performance of non-listed real estate funds on a global basis and is created by ANREV, INREV and NCREIF. This publication includes performance figures up to end of Q4 2020.

The GREFI All Funds Index was updated for the first time on a quarterly basis following the second quarterly release of the ANREV Index for Q1 2014. From Q1 2014 onwards, GREFI has been updated 12 weeks after the quarter end. This index release follows the same structure of previous releases. All numbers are also available in an Excel file.

The history of the Global Real Estate Fund Index (GREFI) has been extended to Q1 2005, now offering almost 15 years of performance across all regions. 

The GREFI All Funds Index delivered a total return of 1.80% over Q4 2020, up from 0.83% posted over Q3 2020, according to the latest release of the Global Real Estate Fund Index (GREFI).

Key highlights:

Total returns improved across all regional strategies, with Asia Pacific funds in the lead in Q4, while European funds outperforming on a 1 year rolling basis.

GREFI non-core funds continued to outperform core vehicles, with the Q4 total returns of 2.73% and 1.64% respectively.

Please send any queries to Daisy Huang  or Amélie Delaunay.