ANREV, INREV and NCREIF are excited to launch the first global open-end diversified core equity funds index, and the latest in a suite of global indices aimed at enhancing the transparency of the non-listed real estate industry.
The unveiling of this consultation index took place at the NCREIF Summer Conference on 11 July, a fitting tribute to the 40-year rich history of open-end diversified core equity funds in the US market. With ODCE funds growing and rapidly evolving in Europe and Asia the Global Alliance are pleased to bring the three regional indices together to help the industry navigate today’s global playing field.
We asked the CEOs of the three organisations to briefly explain what value the new Global ODCE will bring to the non-listed real estate industry. Listen to what they had to say.
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The Global ODCE Index sits alongside GREFI and the Global IRR Index. The Global ODCE Index includes non-listed real estate funds combined on an equally weighted basis and is a subset of the GREFI. It measures the performance of 50 funds, with a combined total gross asset value of $403 billion.
Headline performance for Q1 2023
This new Global ODCE Index is focused on open-end diversified core equity funds and caters for the growing need for data on a global scale as investor appetite for globally diversified core real estate portfolios gathers momentum. The consultation release measures the net asset value quarterly performance, net of fees and other costs, with a near-term plan to report gross of fees performance.
Key highlights include:
- The Q1 2023 total return was -1.9% with negative performance across all three global regions. Asia Pacific delivered the strongest performance at -0.43%, followed by Europe at -1.89% and the US with a total return of -3.38%.
- On a five-year annualised basis, the Global ODCE Index shows an aggregated total return* of 4.89%.
- The US outperformed the other two regions with a total return of 6.56%. Asia Pacific posted 4.89%, while Europe delivered 3.26%.
* total returns are reporting currency returns aggregated by conversion to USD
Download the Snapshot, Report and Excel supplements below or view the latest press release here.