Funds of funds deliver positive returns of 2.93% in 2022
The average total return of funds of funds remained positive during 2022 at 2.93 percent, although slowed significantly compared with the 13.96 percent delivered for 2021, according to the ANREV/INREV Funds of Funds Study 2023.
Although funds of funds are smaller than other traditional investors, they are an important and active group of investors. In 2022, they invested more than $5.5 billion into the global real estate market.
Funds of funds' assets under management (AUM) is largely allocated to core strategies. However, 2022’s 10 percent allocation to value-add investments is the highest allocation on record.
European-domiciled funds of funds allocated 11 percent of their total capital to vehicles with Asia Pacific strategy at end of 2022. The increase in allocations to Asia Pacific has more than doubled over the last three years.
This is reflective of the Asia Pacific region's growth in sophistication and investment opportunities, as