Funds of funds have not always been the most sought-after vehicles for investors with an appetite for non-listed real estate. But recent data suggest a shift in attitudes and preferences. Funds of funds now have a rising appeal that seems rooted in a combination of complementary elements.

Chief among these is performance. The latest Funds of Funds study, published by INREV and ANREV, reveals six consecutive years of positive performance. The positive returns continued into 2018 (the most recent year for which data is available), reaching total returns of 6.7 percent.

Regardless of whether data was broken down by style, structure, regional strategy or size, these vehicles boast compelling performance statistics. As a result, the scale of commitment to funds of funds is increasing. According to INREV’s Fund Manager Survey 2019, the total value of funds of funds assets under management reached a record €27.5 billion globally at the end of 2018. Simil