Core funds of funds outperform noncore, continuing years of stable performance

Last year was a good year for funds of funds, seeing a return of 6.7 percent in 2018 — the sixth consecutive year of positive performance — according to the latest ANREV/INREV Funds of Funds Study. Though slightly down on the 8.4 percent in 2017, funds of funds continued to deliver positive returns to investors, whether broken down by style, structure, regional strategy or size.

Asia Pacific funds of funds returned 1.3 percent in 2018, following a strong showing in 2017 of 12.8 percent. This follows a long-term trend of volatility experienced by Asia Pacific funds of funds over the years. In comparison, funds of funds with a global strategy outperformed to deliver a total return of 6.8 percent, while those with a European strategy saw returns of 6.6 percent.

Funds of funds account for $31.5 billion or 1.3 percent of the gross asset value (GAV) of non-listed real estate vehicles worldwide, according to the