Asia-Pacific investors have reversed their bearish attitude to funds of funds, with the amount of capital in non-listed real estate funds of funds more than doubling in 2017, says ANREV.
Results from a study by the Asian Association for Investors in Non-Listed Real Estate Vehicles (ANREV) has revealed that the share of capital raised by non-listed real estate funds of funds rose from US$3.2 billion in 2016 to US$8.5 billion.
According to the study results, one in seven investors have plans to raise their allocations to funds of funds in the next two years.
Although all regional strategies performed well, Asia-Pacific-targeted funds of funds strategies performed particularly well.
“After a few years of subdued performance, Asia-Pacific funds of funds posted a remarkable comeback with returns of 15.1 per cent in 2017, a strong come back from the -3.3 per cent recorded in 2016,” according to a statement by ANREV.
By contrast, European funds and global funds delivered returns that closely resembled returns from the year prior.
Commenting on the results, ANREV director of research and professional standards Amélie Delaunay said: “The scale of the returns in Asia-Pacific in 2017 are significant, demonstrating their increasing appeal in the region.
“The results generally reflect good health within the funds of funds segment, showing that they continue to offer smaller investors in particular an important diversification tool and the opportunity to create a nice blend of different funds.”
However, despite the greater take-up of funds of funds, the sector delivered an annual return of 5.1 per cent in 2017, which fell by 1.1 per cent from 2016’s returns of 6.2 per cent.
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