Q4 non-listed fund returns by sector |
|
Return % |
|
| All funds | 2.58 |
| Core funds | 2.46 |
| Value added funds | 3.48 |
| Closed end funds | 3.69 |
| Open end funds | 2.25 |
| Office funds | 1.33 |
| Retail funds | 3.27 |
| Industrial/Logistics funds | 3.08 |
| Residential funds | 4.39 |
| Multi-sector funds | 1.9 |
European non-listed real estate funds rebounded after a slow third quarter, with overall returns up from 1.1% to 2.6%, according to INREV’s Q4 2016 Quarterly Index.
The report, which measures the performance of 227 funds across Europe, showed the UK’s returns bounced back to 1.6%, recovering from a post-referendum slump of -1% in Q3.
Total UK return in 2016 was 2.46%, with funds providing returns of less than 2% in every quarter. By contrast, every quarter between the second half of 2013 and the end of 2015 returned more than 2%.
Both open-end and closed-end funds across the continent saw uplifts on the previous quarter with returns of 3.7% and 2.2%.
Meanwhile, value-added funds almost tripled from 1.2% to 3.5%.
Henri Vuong, director of research and market information at INREV, said: “European non-listed real estate funds are back firing on all cylinders. The quarter-on-quarter gains across the piece are very encouraging. They reflect sustained investor confidence in the asset class, despite uncertain conditions.
“We’ll be watching the next the next period very closely to see how the picture unfolds as the longer term effects of changing geopolitical and macro-economic policies become clearer.”
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