This article is from the Australian Property Journal archive
AN ISPT-managed fund delivered a total return of 19.02% – outperforming the Australian average of 11.75% over the 2018 financial year, according to the ANREV Australia Core Open End Fund Monthly Fund Index.
The capital growth component increased from 6.7% to 6.98% over the period, while the income component was 4.49%, 580 basis points lower than the previous period.
Office-focused funds trumped all comers, with a one-year return of 14.99% and capital growth of 10.17%.
They were followed by diversified funds, which returned 12.19% and with capital growth of 7.13% forming a strong component of the total return.
Industrial funds posted a total return of 10.73%, and retail funds 9.12%.
The ISPT 50 Lonsdale Street Property Fund outperformed the index, with a total return of 19.02%, followed by the APPF Office Fund which delivered a net total return of 18.20% over the past financial year. Investa Commercial Property Fund was third with 16.60%.
ANREV launched the index in August 2017. It measures post-fee NAV total returns of core non-listed wholesale funds covering the office, retail, industrial and logistics, and diversified sectors.
Currently, it includes 19 funds with a total GAV of $102.05 billion. The NAV of the index is currently $83.39 billion and the index has grown by $9.5 billion since the end of June 2017, with a gearing level of 15.54%, compared with 13.98% in June 2017.
According to the Fund Manager Survey 2017, conducted by ANREV, INREV and NCREIF, non-listed real estate vehicles – taking in funds, separate accounts, joint ventures and club deals – made up 83.3% of all real estate assets under management globally, at around US$2.4 trillion.
Assets in the Asia Pacific continue to be mostly invested in non-listed funds and private REITs, at 59.0%, and then separate accounts (direct) made up 17.4%, while they made up 55.1% in European and 47.6% in North America.
Non-listed real estate funds accounted for 45.5% of AUM worldwide. By region, this was at 39.6% of total Asia Pacific AUM, 40.2% in North America, 51.3% in Europe AUM and 51% of global strategies.
Pension funds and insurance companies were major sources of capital for non-listed funds and separate accounts (direct), accounting for 51.5% of AUM in unlisted direct real estate vehicles in the Asia Pacific, 43% in Europe and 47.3% in North America.
While insurance companies represented 31.2% of the AUM of non-listed direct real estate vehicles in Europe, this figure was just 6% and 6.8% in Asia Pacific and North America respectively.
Australian Property Journal
