The Asian and European Associations for Investors in Non-listed Real Estate Vehicles (ANREV and INREV) and the National Council for Real Estate Investment Fiduciaries (NCREIF) have teamed up to create a new index to measure the performance of non-listed real estate vehicles on a global basis.
According to a statement by ANREV, the new global fund index will enable the non-listed real estate sector to be analysed and compared against other asset classes globally. One of the primary goals for this global index is to provide investors with additional information for asset allocation.
“A global index will have far-reaching benefits for the whole industry, particularly in terms of establishing universal performance benchmarks and standardisation,” said Patrick Kanters, INREV chairman and managing director of global real estate at APG Asset Management. “It also will help with specific issues such as improving asset liability modelling.”
Regional fund indices already are in place at NCREIF and INREV, and an inaugural Asian fund index was launched by ANREV in 2011. The combined global index potentially could encompass some 670 funds with a total estimated gross asset value of €519 billion.
Mark Roberts, managing director and global head of research at RREEF Real Estate and chairman of NCREIF, added that the goal of this new initiative “is to improve the transparency of real estate as an asset class and help our members make more informed investment decisions.”
A global index working group has been formed with representatives from all three bodies to guide the process, with the aim of presenting initial results at ANREV’s annual conference in Hong Kong in October and NCREIF’s fall conference in Florida in November.