• Funds of funds assets under management rose to a minimum of US$ 37.7 billion globally
• As a group funds of funds delivered positive net average returns of 5.6% in 2019
• Funds of funds with a global strategy further enhanced their market dominance

On average, funds of funds have delivered seven consecutive years of positive returns, with an average of 5.6% in 2019.

ANREV and INREV Funds of Funds Universes (‘Universe’) contains 51 vehicles representing a total Net Asset Value (NAV) of US$20.2 billion. Ten funds of funds have indicated their preference to remain anonymous and therefore the online Funds of Funds Universe displays 41 of the 51 funds of funds.

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 10 largest managers represent 40% of the overall AUM which is on par with levels observed in previous years.

• Total real estate AUM grew by 14.0%, from US$3.2 trillion in 2018 to US$3.6 trillion in 2019
• The three biggest managers reported real estate AUM above US$175 billion
• The three biggest managers reported real estate AUM above US$175 billion

As of 31 December 2019, total real estate assets under management (AUM) stand at US$3.6 trillion compared to US$3.2 trillion at the end of 2018. Non-listed real estate represents a significant portion of total real estate assets under management. Of the US$$3.6 trillion total AUM, non-listed accounts for 82.2% or around US$3 trillion.

With US$278.7 billion of real estate AUM, The Blackstone Group tops the overall list. Brookfield Asset Management posted total real estate AUM of US$201.9 billion, securing them second place. In third position was PGIM with US$179.2 billion of real estate AUM.

The two largest managers in Asia Pacific, CapitaLand and ARA Asset Managers, are way ahead of the rest both with total real estate AUM above US$60 billion.

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 2020 survey attracted the participation of 159 fund managers globally, and although this is lower compared to last year when over 200 respondents were included, the total capital raised for new investments into real estate ran up to a record of US$225.8 billion.

Capital was sought for 982 vehicles which equate to a minimum of US$220.3 billion of new equity raised for investments into non-listed real estate, a substantial increase compared to the previous record of US$185.4 billion for 2018. The Asia Pacific region attracted US$32.8 billion of equity, a significant increase to the previous years’ figure of US$26.9 billion.

ANREV is pleased to present the results of its seventh global Investment Intentions Survey with a specific focus on non-listed real estate funds. The survey was conducted in conjunction with the European Association for Investors in Non-listed Real Estate Vehicles (INREV) and the Pension Real Estate Association (PREA). By joining the forces of all three organizations, the survey is able to present a truly global view on expected trends and investment intentions within the real estate industry. This is the thirteenth edition of the regional survey which attracted 140 respondents: 125 investors (89.3%), and 15 funds of funds managers (10.7%).

Chapter 2 explores global real estate allocations, providing insight into investment trends globally and is based on the full sample of respondents. This is a common section that can also be found in the INREV and PREA 2020 Investment Intentions reports.

Chapters 3 through 7 focus on the Asia Pacific real estate market, including insights on preferred structures, markets, sectors, styles and trends. These chapters are based only on those investors and fund of fund managers who are already investing in the Asia Pacific market or intend to do so in the next two years.

- March 2020 updated

The ANREV / INREV Management Fees and Terms Comparison Study compares the fees and cost structures of non listed real estate investment funds in Asia Pacific and Europe with a focus on total expense ratios (TERs) and real estate expense ratios (REERs). The report is based on the regional studies conducted by ANREV and INREV during 2018.

Some of the key findings identified in the report are as follow:

• TERs before and after performance fees are higher in Asia Pacific than in Europe
• Core funds in Asia Pacific have lower TERs than in Europe
• REERs are on average lower in Asia Pacific than in Europe

Please contact Draco Mok at [email protected] if you have any questions regarding the comparison study.

This is the third fund termination study conducted by ANREV. The survey aims to examine the options fund managers consider as their funds approach their termination dates. The survey was conducted in October 2019 through a questionnaire. We received participation from 11 fund managers managing 19 non-listed real estate funds in Asia Pacific with a combined gross asset value (GAV) of US$4.4 billion.

On 14 August 2019, the ANREV Research Committee and the Department of Real Estate at National University of Singapore (NUS) hosted the ANREV Academic Conference 2019.

The conference aimed to foster stronger links between academics, public policy makers and industry researchers on relevant themes in APAC Real Estate. 

The conference was well attended (approximately half of whom were university affiliated and the other half, industry or public sector based). Particularly encouraging was participation from a broad geographic base with attendees coming from eight different countries. 

Please refer to the link below for the details of the conference program.

https://www.anrev.org/en/events/details/88/449

• At least a fifth of investors are looking to maintain or increase their exposures to funds of funds

• As a group funds of funds delivered positive returns of 6.7% in 2018

• Global strategy vehicles represent the largest share of funds of funds

Five consecutive years of positive growth saw funds of funds achieve a positive return of 6.7% in 2018.

In total, ANREV and INREV Funds of Funds Universes (‘Universe’) contains 51 funds of funds managed by 23 managers from the funds of funds universe. Collectively these vehicles represent a total Net Asset Value (NAV) of US$20.1 billion. Ten funds of funds indicated their preference to remain anonymous and therefore the online Funds of Funds Universe shows only 41 of the 51 funds of funds.

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.