US real estate funds outperform Asia and Europe in 2nd quarter

Real estate funds in the United States have outperformed those in Europe and Asia Pacific in the April-to-June period, according to the Global Real Estate Fund Index.

The result is the second straight quarter that US real estate funds have topped the global league tables, according to data provider.

United States funds returned 3.88 per cent, outperforming Asia Pacific’s 2.96 per cent and Europe’s 2.54 per cent, according to the index that tracked 389 funds during the quarter.

Overall, the index returned 3.22 per cent compared with 2.61 per cent in the first quarter.

The Global Real Estate Fund Index shows the performance of non-listed real estate funds on a global scale using data from indices produced by the European Association for Investors in Non-Listed Real Estate Vehicles ( INREV), the Asian association for Investors in Non-listed Real Estate Vehicles (ANREV) and The National Council of Real Estate Investment Fiduciaries (NCREIF). The index was first published in April 2014.

For the Asia Pacific, non-listed real estate funds returned of 2.6 per cent in the second quarter, compared to 2.5 per cent in the previous quarter. On an annual basis, Asia Pacific fund returned 10.7 per cent, according to the ANREV quarterly index.

“Non-listed funds in Asia Pacific showed a steady performance for the second quarter of 2015 and passed the hurdle of a 10 per cent total return on a one year rolling basis, the first time in four years. The capital growth component of the core fund returns reached a record level of 2.2 per cent showing an improvement across all markets in the region,” Amélie Delaunay, director of Research & Professional Standards, ANREV, said