Welcome to the January 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 Q3 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 0.82% over Q3 2020, up from -1.30% posted over Q2 2020, according to the latest release of the Global Real Estate Fund Index (GREFI).

Key highlights:

• Asia Pacific funds delivered the strongest performance among the regional strategy funds.
• European open end funds performed best amongst other open end peers, with a 1.16% quarterly return.

From Q3 2018 edition onward, the GREFI Index will no longer include US closed end value added funds (NPI - CEVA Index)

Please send any queries to Daisy Huang , Kip Kong or Amélie Delaunay.

In light of the COVID-19 pandemic, ANREV has conducted an additional survey investigating funds’ valuations under COVID-19.

The ‘Impact of COVID-19 on valuations’ survey was distributed to fund managers during the data collection of ANREV Quarterly Index Q3 2020. They were asked to fill in the extra questionnaire to look into the impact of the “Material Uncertainty clause” on asset valuations, suspension of trading and status of rent collection.

For any questions, please contact Amélie Delaunay or Katrina Wong.

Compliance of Asia Pacific non-listed real estate funds with the INREV Guidelines significantly improved since last survey

The Review of Investor Reporting Trend survey provides an insight into current market practices in investor reporting across non-listed real estate vehicles investing in Asia Pacific and especially the extent to which reporting complies with the requirements and recommendations of the INREV Guidelines. The survey has been undertaken by PwC.

•ANREV’s All Funds index returned 1.66% in Q3 2020, down from -2.31% in Q2 2020.

•Value added funds’ performance surged from -0.28% in Q2 to 5.57% in Q3 2020.

Data contributions were received from 92 funds with a total gross asset value of US$133.9 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.

If you have any questions about the ANREV Index or want to take part in this industry-led initiative, please contact Daisy Huang or Kip Kong.

The Code of Tax Conduct is a new best practice module in the INREV Guidelines on 1 January 2021. The Code comprises a set of tax-related best practices designed to be applied across the lifecycle of a real estate investment vehicle’s strategy. It aims to achieve a shared vision on tax matters for the non-listed real estate investment industry and thereby to help INREV and ANREV members address tax matters internally within their organisations and externally with regard to others’ expectations and interests.

Closely linked to both corporate governance and ESG, a contemplated review of the INREV Guidelines in 2021 may consider whether and how to more closely integrate recommendations and best practices in these three areas within the INREV Guidelines. In addition, online tools for self-assessment of adopting the Tax Conduct best practices may also be developed next year.

The Code of Tax Conduct will apply to reporting periods ending on or after 31 December 2021. The Code is being made available to members now so that they can become familiar with it throughout 2021, while INREV and ANREV considers the appropriate next steps for further integration and support to members. 

These templates will give members additional insight into the applicability of the INREV NAV adjustments for specific GAAPs to come to the fair value of the underlying assets and liabilities and to adjust for the spreading of costs that will benefit different generations of investors. 

16 December 2020, Sydney – The third quarter of 2020 showed strong returns for managed investments in Australian farmland, according to the first quarterly Australia Farmland Index compiled by ANREV.

Find out more about the index takeover and the participant commentary from Argyle Capital Partners in the press release.

As the end of a difficult year is approaching, ANREV Professional Standards Committee and PwC invited investment managers to a round table discussion which provided opportunities for managers to discuss with their peers issues they experienced through the year especially around valuation uncertainties and specific disclosures linked with the COVID 19 pandemic.

The topics that were discussed during the event were:

• COVID 19 in general, length of the pandemic and underappreciation of long term impact
• Managing cash flow income, tenant credit risk, and meeting loan covenants
• Rent collection and rents relief / deferral requests from tenants and any impacts to valuation
• Valuation, including working with valuers in respect of caveats or material uncertainty clauses
• Liquidity in general and whether redemptions and subscriptions should be met on NAVs today for OE vehicles
• Investors’ inquiries and expectations on disclosures

A summary of the discussion may be found in the link below.

The ANREV Australia Core Open End Fund Monthly Index (ACOE) saw a total return of 0.40% in November 2020. The ACOE includes 19 funds with a total GAV of AUD 111.61 billion.

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

Please contact Daisy Huang or Katrina Wong if you have any questions regarding the Index.

In December's issue, we have included:     

Australia

• Government consults on permanent reforms in respect of virtual meetings and electronic document execution

Cayman Islands

• Cayman Islands Economic Substance Reporting and Notification
• EU Removes the Cayman Islands from Annex I
• Further Amendments to the Companies law, LLC law and SIBL.

China

• China releases draft Personal Information Protection Law for public comment

European Union (EU)

• Sustainable financial disclosures: Key Deadlines for Global Investment Managers

Hong Kong

• Consultation conclusions on proposed amendments to the Code on REITs
• Abolition of Doubled Ad Valorem Stamp Duty on non-residential property transactions
• SFC launches consultation on climate-related risks in funds
• SFC launches consultation on anti-money laundering guidelines
• SFC issues circular on implementation of changes to open-ended fund companies’ regime

Korea

• Government revises rules to facilitate accounting and audit reforms

Singapore

• COVID-19 (Temporary Measures) (Temporary Relief for Inability to Perform Contracts) (Amendment No. 3) Regulations 2020 gazetted
• MAS publishes compliance toolkits for real estate investment trust managers and fund managers
• MAS issues guidelines to strengthen culture of responsibility and ethical behavior in the financial industry
• MAS and Financial Industry Extend Support for Individuals and SMEs who Need More Time to Resume Loan Repayments

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