Asset Level Index

Contrary to fund-level indices, the asset-level index tracks the performance of real assets across Europe on an annual and quarterly basis.

Yes, membership is required to become part of the Asset Level Index project and access all reports.

No, there is no additional fee. As of January 2023, the Asset Level Index is no longer subject to additional fees. All members get access to the Asset Level Index Analysis Tool, but only members submitting asset level data and investor and fund of fund manager members get the full access to the tool.

Yes, non-members can provide data for the index via the INREV Data Platform but cannot access the detailed reports and the Analysis Tool.

Yes, the Analysis Tool is available to:

• All investor and fund of fund manager members - Full access to analysis tool
• All investment managers (who could potentially be data providers) - Partial-high level access while those investment managers who provide data have full access to analysis tool
• Service providers, investment bank and academic/research members – Partial-high level access

INREV opened access to the Asset Level Index Analysis Tool to the wider INREV membership to support the visibility of the Index and to encourage future growth  INREV members that do not contribute data can get a glimpse into the capabilities of the comprehensive Asset level analysis tool, but do not have access to the full version.

Investor, fund of fund manager and data contributing investment manager members have full access to the INREV Asset level Index (ALI) analysis tool. 
 
Investment managers who wish to join the index and get access to the analysis tool are obliged to at least provide the data for the assets of the funds that are included in the INREV fund level index. 
 
Fund manager members who do not provide data can still access the analysis tool, but do not have access to the full version. This new benefit gives you a glimpse into the capabilities of the comprehensive Asset level analysis tool. 
 
Investor members are not required to provide data to join the project and get access to the full analysis tool. 
 
Academic/research, service provider and investment bank members can access the Asset Level Index Analysis Tool, but do not have access to the full version. 

In the summer of 2015, Deka and Deutsche Bank, both members of both INREV and the BVI (German Investment Funds Association), approached INREV to discuss their requirements for a comprehensive set of indices to measure the performance of real estate assets across the world. 
 
This requirement was driven by regulations on risk metrics disclosures, which must be based on robust indices representing the performance of global real estate asset markets.

There was strong appetite from, and a need within the membership, for information that will allow the industry to better understand the drivers of fund performance.  This initiative will help the industry strive towards better transparency. Together with ANREV and NCREIF, this initiative will allow INREV to move towards the provision of a robust and highly dependable global index.

The Asset Level Index initiative delivers on INREV’s mission to further transparency of the non-listed industry; it further satisfies the strategic objective of further developing global market information to support peer-to-peer comparison.

INREV was approached by its members due to its experience in index construction and production, as well as its independence and not-for-profit status and close working relationships with NCREIF and ANREV. 

There are many countries across Europe that do not have a robust index and that European indices are dominated by the countries like Germany, Italy, The Netherlands, UK and France. This index will provide greater granularity and a greater analysis of more European countries.

INREV promotes a self-service model whereby members can log in anytime anywhere to access information instantly. Members will be able to make their own customised selections, thereby cutting out lag time in waiting for a response from service teams. 

Through the INREV Fund Index INREV already has fund level performance data of more than 300 funds. This presents an opportunity to potentially expand coverage and provide members access to a large European asset level database covering more than just major European real estate markets.

The INREV Asset Level Index includes the following assets: 

• Located in Europe
• All asset types and sub-types
• All life-cycle stages
• All types of valuation approaches
• All accounting standards

The INREV Asset Level Index is an unfrozen index which means that historical data can change with future updates.

The INREV Asset Level Index is not considered to be a benchmark under the Benchmarks Regulation (BMR) which entered into effect on 1 January 2018. For more information about the EU BMR listen to the Tax and Regulations  Briefings call.

The INREV Asset Level Index cannot be used for derivatives.

The main asset type is determined by the local authority classification or is manager defined. If the share of market rent of any single asset use type is greater than 50%, select this as the main asset use. If none of the types has a share greater than 50%, the asset type should be defined as mixed.

When a member stops contributing their data to the Index, this data will remain in the Index ending at the last date of contribution. As with other INREV indices, the historical data will be kept in the index to ensure continuity.

The Asset Level Index is value-weighted, meaning that large assets have a bigger impact on the performance of the index.

No. All assets that are provided by contributors are taken as-is. This means that for countries that we do not have enough assets for, coverage might be underrepresented.

Asset level data can be reported on a monthly, quarterly, semi-annual and annual basis. 

The annual index includes assets that are reported on a monthly, quarterly, semi-annual and annual basis. 

The quarterly index includes assets that are reported on a monthly and quarterly basis only.

Performance for any index or sub-index is reported only when the sample includes at least 3 assets from 3 different companies and none of the companies account for more than 60% of the sample, when measured by market value.

To calculate aggregate returns, a local currency methodology is used. This means that all asset level indices and portfolio returns do not take currency fluctuations into account. To remove the effect of currency fluctuations, the monthly values that are reported in currencies other than the Euro are converted using the first day of the month exchange rate.

Yes, one of the main goals of the Index is to allow members to create their own customised indices with the online analysis tool, and compare this to a market index.

All data fields that we collect are included the Asset Level Index Data Delivery Template, which was developed together with INREV members. This template includes all definitions and validation rules that we use to upload the data. The most recent version of this template can be downloaded via the INREV website.

Data is collected via an online data input tool, where members are able to upload the Excel data delivery template.  The system runs several validations to ensure the quality of the data received. Members are asked to approve data before submission to INREV.

Data collection starts immediately after a quarter has ended for a period of up to 8 weeks. 

The approximate deadlines are as follows: 

• Q1 data: End May
• Q2 data: End August
• Q3 date: End November
• Q4 data: End February

Data validation is carried out in a three step process: 

1. Systems based validation – the system will use rules-based algorithms to validate data.
2. Member approval – the member will need to approve information before submission to INREV
3. INREV verification – the INREV team will verify information before inclusion to the database

The INREV Asset Level Index measures the annual and quarterly performance of the real estate assets across Europe and includes assets that report their data on a monthly, quarterly, semi-annual and annual basis. 

Performance is calculated using a monthly chain-linking methodology and excludes effects of leverage and vehicle level costs, fees and expenses. 

The Index results are based on asset level data that is provided to INREV directly by managers and investors.

The online tool measures gross performance of assets, that is excluding effects of leverage. Performance is calculated using monthly chain-linking formula on a quarterly and annual basis. 

The index was launched in April 2019 at the Annual Conference. Historical data dates back to Q1 2014.

Financial data for the assets needs to be reported in the reporting currency of the country where the asset is located.

The headline indices include all types of assets, both standing investments, developments, etc.

The headline indices include all valuations, both transactions and valuations. As for types of valuations, the index includes external and internal valuations.