INREV, the European Association for Investors in Non-Listed Real Estate Vehicles, has launched its German Vehicles Index for Q3 which reinforces that the German story “is about stable performance”, says the association’s director of research and market information Iryna Pylypchuk.
She points out that the Q3 index result is unchanged on Q2’s figure of 0.83%. On a 12 month rolling basis this is 12 bps above the average annual return of 4%.
The reason for the outperformance of the index is clear she told Real Asset Media’s Richard Betts.
“It’s no surprise that the Spezialfonds sector continued to drive the performance of the overall index. It delivered 1.24 % this quarter as well, versus 0.59% for the Publikumsfonds (mutual funds) which are more tailored to retail investors and are a little bit less diverse in their strategies,” Pylypchuk said.
Spezialfonds target institutional investors and have more tailored strategies. They have been outperforming consistently since 2014/15, Pylypchuk said. And if you look at last the 12 months running total they have outperformed Publikumsfonds with 6.54% versus 2.76%.
Pylypchuk also said that funds with a single country strategy that features Germany have outperformed with 1.74% in Q3, more than double the Europe ex-Germany focused vehicles.
Click on the video to watch the full interview.