Message from the Chief Executive to ANREV members and stakeholders

The second Global IRR Index consultation release includes 313 closed end funds across vintages from pre-2002 to 2018 with a non-core manager defined strategy.

Key highlights include:

• The second release of the Global IRR Index is comprised of 267 value added and 46 opportunity funds
• The Q1 2020 Global IRR Index includes 79 Asia Pacific funds, 100 European and 134 US focused non-core closed end funds
• Older vintage funds (pre-2002) display the highest performance with an equally weighted IRR of 15.7%

In June's issue, we have included:     

Australia

• Extending the instant asset write-off for eligible businesses
• Relief for tenants and landlords

British Virgin Islands

• New regulatory regime for closed-ended funds in the British Virgin Islands.

Cayman Islands

• Registration Deadline Imminent for Private Funds

Hong Kong

• SFC proposes changes to the Code on Real Estate Investment Trusts
• Hong Kong Quality Assurance Agency launches green finance certification scheme – ESG fund

Japan

• Ministry of Finance announces implementation of new foreign direct investment regulations from 8 May 2020

Korea

• FSC and FSS finalise measures to improve regulatory framework for private equity funds

OECD

• OECD issues analysis examining tax treaties and the impact of the COVID-19 crisis

Singapore

• Personal Data Protection (Amendment) Regulations 2020 come into effect
• Securities and Futures (Offers of Investments) (Collective Investment Schemes) (Amendment No. 3) Regulations 2020 gazetted

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

ANREV has launched the Q1 2020 IRR Index by vintage. The IRR Index measures performance of value added and opportunistic non-listed closed end funds investing in Asia Pacific.

The Q1 2020 sample of the ANREV IRR index includes 79 funds. 4 new funds were added this quarter.

We welcome any questions or comments - please email Daisy Huang or Kip Kong.

Welcome to the June 2020 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 Q1 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 0.28% over Q1 2020, down from 1.78% posted over Q4 2019, according to the latest release of the Global Real Estate Fund Index (GREFI).

Key highlights:

• Total returns stood at -1.36% for Asia Pacific funds, 0.22% for European funds and 0.98% for US strategy funds over Q1 2020
• GREFI Non-core funds posted the lowest return since the last 10 years, with a quarterly performance of 0.22% over Q1 2020.

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.

Over the past decade, fund sponsors have increasingly used GP-led liquidity transactions to provide liquidity options to LPs, to rebalance portfolios, and to manage assets that have stabilized or need additional capital/time.  The impact of the COVID-19 outbreak is expected drive further growth in transactions.  During this briefing, Damian Jacobs of Kirkland & Ellis, Nicholas Miles of Lazard Private Capital Advisory and Rahul Ghai of Partners Group provided an overview of the market and of GP-led liquidity transactions.

During this briefing, a panel of leading industry specialists explored the longer-term opportunities and key considerations for investing in logistics and data centers in Asia Pacific.

• ANREV’s All Funds index returned -1.36% in Q1 2020, down from 2.52% in Q4 2019.

• All style enters negative territories with core funds returning -0.93%, -2.83% for value added and -4.35% for opportunity funds.

Data contributions were received from 95 funds with a total gross asset value of US$136.6 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 ANREV Australia Core Open End Fund Monthly Index (ACOE) saw a total return of -0.44% in May 2020. The ACOE includes 19 funds with a total GAV of AUD 111.00 billion.

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

Please contact Daisy Huang at [email protected] or Draco Mok at [email protected] if you have any questions regarding the Index.

During this briefing, a panel of experts explored the APAC market trends in the midst of uncertainty. Brian Hung of APG, John Pattar of KKR, Nick Chukiat of UBS Asset Management and David Green-Morgan of Real Capital Analytics shared with us their views from different perspectives.