Healthy returns for non-listed funds

Healthy returns for non-listed fundsThe performance of Asia Pacific non-listed real estate funds remains stable, according to the latest ANREV Annual Index.ANREV, the Asian association for investors in non-listed real estate vehicles, finds that core funds were the best performing in 2014, earning a total return of 10.7 per cent.The overall return of the “All Funds” index was 9.1 per cent in 2014, compared to 9.2 per cent the previous year. The release of the Index attracted contributions from 93 funds with a total gross asset value of $109 billion.Japanese funds showed the highest returns, surpassing Australia to become the best performing geography. Returns on Japanese funds jumped to 22.2 per cent in 2014, up from 8.5 per cent in 2013.In comparison, Australian funds only increased by 1 basis points from 9.1 per cent to 10.6 per cent. Chinese funds lagged behind with deteriorating returns of 2.8 per cent.Value added funds also showed a better return than in the previous year, with a total return of 8.4 per cent. Opportunity funds underperformed and, despite an extraordinary performance in the fourth quarter, offered a return of only 4.9 per cent – the lowest since 2009.Amelie Delaunay, ANREV’s director of research, says that performance of core funds has been on the rise since 2011, and that the drivers for returns are evenly spread between capital growth (5.4 per cent), the highest since 2010, and income return (5.3 per cent).”Both Australia and Japan benefited from strong domestic and inbound international capital flows as well as being large, liquid and transparent markets,” she says.To download the report click here.