This article is from the Australian Property Journal archive
ASIA Pacific unlisted real estate funds have delivered their best return for nearly a decade, on the back of strong performances from Australia and Japan, according to ANREV Annual Index.
APAC unlisted funds returned 11.7% in 2015 compared to 9% in 2014.
Japanese funds were the best performers in 2015 returning 21.5% compared to 20.7% in 2014.
It was followed by Australian funds, which returned 16.9% in 2015 compared to 10.6% in 2014, with the main driver of performance being the capital growth component which was 12.1% in 2015 compared with 5.4% in 2014. On the other hand, the income return slightly dropped from 5.2% to 4.9%.
The total gross asset value (GAV) of Australian funds continued to increase, reaching USD 48.4 billion compared to USD 45.2 billion in 2014.
Meanwhile Chinese funds returns were negative in 2015, -3.0% compared to 2.8% in 2014, the worst performance since 2008, which can be attributed to a poor performance in Q3 2015.
ANREV director of research and professional standards Amélie Delaunay said the performance of core open end funds in the region hit a record high post GFC as they returned 14.9% in 2015.
“This strong performance justifies investor interest for these funds especially in a low bond yield and low interest rate environment,” she added.
Core funds’ performance continued to climb since 2010, returning 14.9% compared with 10.8% in 2014, the main driver being capital growth which was 9.9% in 2015 compared to 5.5% in 2014.
In comparison, the performance of value added funds decreased in 2015 returning 6.0% compared to 8.4% in 2014. This investment style has been the most affected by fund liquidation as the sample of funds dropped to 27 compared to 37 in 2014. The performance of opportunity funds went up by 90 basis points to 5.9% in 2015.
Australian Property Journal
