The Funds of Funds Study 2015 released jointly by INREV and ANREV, the European and Asian associations for investors in non-listed real estate vehicles, respectively, shows that non-listed real estate funds of funds representing €28.8 billion of AUM achieved an average total return of 8.0 percent in 2014, the highest return since 2007 and a much-needed substantial improvement on the 0.2 percent average total return achieved in 2013.

The study authors say that the 2014 data “signals a strong recovery of the funds of funds industry, moving it back to prominence as a key area of interest for institutional investors.” The “Funds of funds performance” chart to the right shows the performance of funds of funds over the past eight years, with European funds of funds generally performing less well. Lower volatility in the funds of funds market is also now evident, with a significant narrowing of the gap between upper and lower quartile performance, which stood at 1