We are pleased to present the first product of our Global Standards Steering Committee, and to update members on three global projects.

The NCREIF PREA Reporting Standards and INREV Guidelines: Broad Comparison 2015, highlights the most important differences between the INREV Guidelines that we endorse in Asia Pacific and the NCREIF PREA Reporting Standards and proposes steps to bring them into closer alignment. The report is based on a study prepared by Deloitte NL and focuses on five areas of convergence: definitions, fees and expense ratios, reporting, valuation, and NAV and fair value accounting. Two projects are currently underway to take the next step towards global reporting standards in these areas of convergence.

The Global Definitions Project strives to develop a common glossary of terms – an essential component of any converged standard.  A taskforce has been assembled and milestones are being established. This project will be on-going throughout the conversion process.

The Fee and Expense Project is converging the NCREIF PREA Reporting Standards Real Estate Fees and Expenses Ratio (REFER) with the INREV Total Expense Ratio (TER) to create a single global standard – a critical component to understand manager performance for a fund or vehicle. A taskforce has been assembled and has commenced work.  We anticipate substantial completion of the Fee and Expense Project for use in the Management Fees Term Study: A Global Comparison Study that will be published by ANREV, INREV and PREA in 2016

The Reporting Project will harmonise qualitative and related quantitative reporting elements globally.  We are currently seeking volunteers to form the third project.

The Global Standards Steering Committee was established in early 2015 as a collaboration between ANREV, INREV, NCREIF and PREA to jointly develop a global set of information reporting and disclosure standards, on a non-exclusive basis, which apply and are relevant to the private/non-listed real estate vehicle industry in order to support efficiency and best practice as well as the flow of capital in this industry sector. For further information about any of our projects or if you are interested in participating, please contact Amelie Delaunay, ANREV Director of Research and Professional Standards.

This is the third year that ANREV is partnering with GRESB to publish a Sustainability report, as part of ANREV’s commitment to support its members to improve their sustainability efforts.

This report focuses on sustainability performance of ANREV members. The number of ANREV participants continued to increase and reached 76 vehicles this year with an aggregate gross asset value of USD104 billion. ANREV members account for 78% of the survey sample of non listed industry participants.

ANREV members continue to perform well above the overall GRESB average score and show an improvement compared to the results in 2014. In 2015, ANREV participants obtain an average score of 58 compared with the global average of 55 and the 2014 result of 54.As a result, ANREV members on average progressed in the GRESB Four Quadrant Model from Green Walk to Green Star.

For further information please contact [email protected]

This is the third annual review of best practice reporting published between PwC and ANREV.

As anticipated last year, compliance levels are growing back towards the levels established with the “old” Guidelines, with headline compliance moving up from 57% last year to 68% this year.

Key highlights of the review this year:

• Work in progress to comply with revised INREV Guidelines as managers are keen to achieve a high level of compliance
•  Investments in technology with the use of online investor reporting portals
• Fund managers are putting more importance and effort in ESG reporting

As part of the 2015 review, private feedback, through interviews and calls, were organised with the 28 participating fund managers, covering all 47 respondent funds.

We would like to extend our sincere thanks to all who shared their valuable time and expertise during this project. 

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In 2015, for the first time, ANREV, in conjunction with INREV in Europe jointly published the inaugural Fund of Funds Study.

The study provides an overview of the fund of funds industry globally, including insights by target region, by style and structure as well as other characteristics of funds of funds.

As at end Q2 2015, there are 64 funds of funds that are managed by 25 fund of funds managers in the ANREV and INREV Fund of Funds Universes (‘Universe’), collectively representing net asset value (NAV) of USD10.5 billion.

The full report also provides a detailed analysis into the performance of funds of funds.

Performance data has been provided for 26 funds of funds managed by 13 fund of funds managers. This sample represents 58.9% of the total NAV of the funds of funds in the Universe. 

Performance figures are quoted as at 31 December 2014 while figures in the Universe are quoted as at the end of Q2 2015 unless stated otherwise.

Steady performance of Asia Pacific non-listed real estate funds in Q2 2015

• Core funds return 3.3%, up for three consecutive quarters
• All funds return 2.6 % for Q2 2015, compared to 1.9% for Q2 2014
• Japan funds returned a very strong 10.6%, still leading country performance in Q2

Data contributions were received from 96 funds with a total gross asset value of US$92.5 billion. Further detail of the sub-indices which cover fund style and various geographies can be found in the full report.

We would like to thank all the companies that supported the data collection exercise and look forward to your continued support in the next round of data collection in November.

To participate in the ANREV Index, please contact Amélie Delaunay at [email protected] or Henry Lam at [email protected] to take part in this industry-led initiative or if you have any questions about the ANREV Index.