Non-listed real estate fund-of-funds returned 8%, the highest since 2007 according to research from Inrev.
The research, released in conjunction with Anrev, found that global fund-of-funds delivered the highest returns, at 11.9%, with a step up in the performance of non-European fund-of-funds. These returned 9.8% over 2014, their best performance since 2011.
European focused strategies recorded total returns of 5.2% leaping from -5.1% for 2013.
Asian strategies lagged the rest of the world however, with returns of -3.3% in 2014.
Investment strategies of the funds also played a significant part in performance. Core funds saw total returns of 8.8% versus 5.4% for non-core.
Inrev also found that fund-of-funds were more willing to invest in core funds, backing on average 13 managers for this strategy, compared to eight for opportunity managers and seven for value add.
Inrev concluded that the performance of fund-of-funds and the relative tightening of performance spreads between upper and lower quartile funds indicated a growing interest in the investment strategy, but warned that €2.7bn of potential investment was due to leave the market in 10 years as some fund-of-funds come to an end.
