The performance of value-added and opportunistic funds in Asia rose in the third quarter of 2016, reversing two consecutive quarters of declining returns, according to trade body ANREV’s quarterly index.
Value added funds rose to 2.38 percent in Q3 from 1.21 percent in Q2 and opportunity funds rebounded to 1.08 percent after a negative return of -3.21 percent in the second quarter of last year, as tracked by the Asia Pacific All Funds Index.
Core funds in Asia Pacific were slightly down on the previous quarter but still performing well with a return of 2.98 percent.
Geographically Australia funds continued their strong performance with 2.94 percent, despite a drop of 43 basis points in their rate of return due to a drop in capital growth and income return. China funds bounced back from -3.64 percent to return 0.11 percent in Q3, but Japan funds, fell to 1.16 percent, the lowest quarterly return since Q4 2013.
Comparted regionally, Asia Pacific outperformed the US and Europe with a total return of 2.58 percent compared with 1.98 percent for the US and 1.01 percent for Europe, according to the Global Real Estate Fund Index (GREFI).
The GREFI Q3 Index includes the performance of 489 funds representing $606.9 billion of total gross asset value;, with 49 percent in US funds, 31 percent in Europe, 16 percent in Asia Pacific, and the remainder in global strategy funds.
“Asia Pacific was the only region to see an improvement in its Q3 performance out of all the regions measured due to the strong performance of all styles of funds. Europe’s decline in performance could be attributed to the weak performance of UK funds and the US also saw a slow down,” commented Amélie Delaunay, director of research & professional standards at ANREV.