Share of capital raised for funds of funds doubles

capital share funds funds management

20 July 2018
| By Oksana Patron |
image
image
expand image

The share of total capital raised for non-listed real estate funds of funds doubled in 2017, proving that the vehicle became more popular among investors due to its significant diversification options, according to the latest ANREV/INREV Funds of Funds study.

Last year saw in total US$160.2 billion of fresh equity raised for non-listed real estate, with US$8.5 billion or 5.2 per cent destined for funds of funds.

According to the study, funds of funds delivered positive returns across all styles, structures, regional strategies and size, with one in seven investors planning on increasing their allocations to funds of funds over the coming two years.

Across global strategies, funds of funds were the largest share of vehicles both by number and size, making up just under 50 per cent of the overall vehicles and representing 78.6 per cent of total net asset value.

They were followed by vehicles with a European strategy, representing 33 per cent, while those targeting the Asia Pacific represented 20 per cent.

The study also found that Asia Pacific funds of funds posted impressive returns of 15.1 per cent last year, which was a strong comeback from the -3.3 per cent recorded a year before.

Amélie Delaunay, director of research and professional standards at ANREV, said: “The scale of the returns in Asia Pacific in 2017 are significant, demonstrating their increasing appeal in the region.”

“The results generally reflect good health within the funds of funds segment, showing that they continue to offer smaller investors in particular an important diversification tool and the opportunity to create a nice blend of different funds.”

 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

3 weeks 5 days ago

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 month ago

Interesting. Would be good to know the details of the StrategyOne deal....

1 month ago

Insignia Financial has confirmed it is considering a preliminary non-binding proposal received from a US private equity giant to acquire the firm. ...

1 week 3 days ago

Six of the seven listed financial advice licensees have reported positive share price growth in 2024, with AMP and Insignia successfully reversing earlier losses. ...

6 days 4 hours ago

Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equi...

5 days 8 hours ago