AREF & MSCI release AREF/IPD Property Fund Vision Handbook statistics for Q1 2017
[03 July 2017] The Association of Real Estate Funds (AREF) and MSCI have released the AREF/IPD Property Fund Vision Handbook for Q1 2017, showing that returns for the AREF/IPD UK Quarterly Property Fund Index increased to 2.1% in the first quarter of the year.
The Handbook, which provides detailed information on 55 of the most regularly traded property funds in the UK market, also offers insights into the main drivers of performance. Key findings from Q1 2017 show:
The best performing sub-sample was the Long Income Property Fund Index, which returned 2.8%, outperforming the 2.0% achieved by the All Balanced Property Fund Index, and recorded the best-12month performance (6.7%), ahead of the All Balanced Property Fund Index (3.7%).
In total, during Q1 2017, these 55 funds had a net inflow of capital of around GBP 1,546m, with inflows being driven by the Balanced funds with 1,384m of inflows, while Long Income funds recorded positive inflows of GBP 152m.
Commenting on the figures, John Cartwright, Chief Executive at AREF, said:
"The significant flows of capital into real estate funds demonstrate the continuing attractiveness of the sector to investors. The relatively high yields and the long term nature of income streams continue to be an appealing factor when investing in real estate, as evidenced by the capital flows into long income funds”
Malcolm Hunt, Executive Director at MSCI, commented:
“The Property Fund Vision Handbook allows market participants to lift the lid on the UK pooled real estate funds market to understand the performance and risk characteristics of these 50+ vehicles with a combined Net Asset Value of over £60bn. The handbook covers the funds’ objectives and constraints, returns, yields, exposures and much more. It makes the UK one of the most transparent property fund markets in the world, providing investors with a wealth of knowledge to make informed decisions”
For more information please contact:
The AREF/IPD Property Fund Vision Handbook for Q1 2017 can be downloaded from the MSCI website here.
Media Relations Manager
+44 (0)20 7269 4620
+44 (0)20 7336 4783
About The Association of Real Estate Funds (AREF):
· The Association of Real Estate Funds (AREF) is the voice of the real estate funds industry.
· Full members have a collective NAV of circa £65bn under management and the majority are benchmarked using the leading AREF/IPD UK Quarterly Property Fund Indices (QPFI).
· We are recognised by policy makers, regulators, tax authorities and other official organisations as the leading representative of real estate funds and therefore have the ability to influence the way our industry evolves.
· Investors and advisers are aware of the high standards our members adhere to, both in transparency and corporate governance, promoting confidence in investing in real estate through member funds.
· Website: www.aref.org.uk
For more than 40 years, MSCI’s research-based indexes and analytics have helped the world’s leading investors build and manage better portfolios. Clients rely on our offerings for deeper insights into the drivers of performance and risk in their portfolios, broad asset class coverage and innovative research.
Our line of products and services includes indexes, analytical models, data, real estate benchmarks and ESG research.
MSCI serves 97 of the top 100 largest money managers, according to the most recent P&I ranking.
For more information, visit us at www.msci.com.