MSCI’s quarterly Global Real Estate Fund Index tracks the investment performance of 109 open-ended real estate funds with a total gross asset value of US$678 billion.
Quarterly net return of the fund
Net annualized return of the fund since December 2019
Global real estate funds posted another strong performance in the first quarter of 2022. A quarterly total return of 5.9% pushed the annual return of the MSCI Global Quarterly Property Fund Index to 23.3%, the highest since its launch. created in March 2008.
At the end of March, the index tracked the investment performance of 109 open-ended real estate funds with a total gross asset value of US$678 billion spread across 9,469 properties assessed quarterly. Funds domiciled in North America, the largest region of the index by value, continued to outperform and have since December 2019 produced an annualized total return of 12.9%. Meanwhile, Asia-Pacific-domiciled real estate funds returned 5.9%, with their yield declining in the first quarter of 2022.
In terms of asset-level returns, North American property funds also had a particularly strong first quarter, with their return accelerating to 23.0% pa, followed by the UK at 20.8% and Continental Europe at 16.7%. While funds domiciled in Asia Pacific have seen their returns slow, the region’s performance still compares favorably over longer time horizons. In fact, since the index’s inception in 2008, it’s been the best performing region with an annualized compound total return of 7.5%.
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