General Questions
1. What are the INREV Annual and Quarterly Indices?
The INREV Annual Index and Quarterly Indices are fund level indices which cover the performance of the European institutional non-listed real estate funds of core and value added manager defined style.
The performance is reported on annual basis for the INREV Annual Index publication and on a quarterly basis for the INREV Quarterly Index publication.
2. Do you have to be an INREV member to be part of the index?
Data contribution to the INREV Annual Index and INREV Quarterly Index is on a voluntary basis, both members of INREV and non members can provide data for these Indices.
Although access to the INREV Index publications and the Fund Level Analysis Tool, is available to memebrs only.
3. Who can join the INREV Annual Index and the INREV Quarterly Index?
Fund managers with a fund investing in Europe that want to join INREV Annual Index and INREV Quarterly Index can deliver their fund data using our Data Platform.
No fees are requested to participate in the Index.
4. Can we see the individual fund performance data available in your platform?
No, performance data is only available at an aggregate level. Individual fund performance data is never disclosed and cannot be accessed by any external party.
5. How can we join the INREV Index?
To join the INREV Index please contact data@inrev.org
Index specifications
1. What are the criteria for INREV Index inclusion?
The INREV Index includes the following assets:
- Institutional funds, target >50% institutional holding
- Funds invested in Europe, target >90% of GAV invested in European real estate
- Commingled funds, target >2 investors
- Only core or value-added funds, opportunity funds are not included
- Annual, bi-annual and quarterly valued funds
- Quarterly valued funds (Quarterly Index)
2. Is the index frozen or unfrozen?
The INREV Annual and Quarterly Indices are unfrozen, which means that historical data can change with future updates.
In 2019, due to the success of the Historical Data Collection project which led to a much larger and a more comprehensive sample of funds for the European non-listed real estate industry, the INREV Annual Index has been unfrozen and the INREV Quarterly Index has been extended back to Q2 2000.
3. Can this index be used for derivatives?
The INREV Index cannot be used for derivatives, due to the Benchmarks Regulation (BMR) which entered into effect on 1 January 2018.
4. What type of data are the index results based on?
The Index results are based on fund level data that is provided to INREV directly by fund managers. INREV does not use publicly available information, and both members and non members can provide data for the Indices. Due to tight reporting deadlines, some data, eg quarterly NAV, might be provided on a provisional basis for a given quarter and will be finalised in the next quarter.
The Annual Index includes annually, bi-annually and quarterly valued funds.
The Quarterly Index includes only quarterly valued funds.
5. What happens when a member stops contributing data, would their fund data remain in the index?
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.
6. Is the index equally weighted or value weighted?
INREV Index is value weighted, meaning that large funds have a bigger impact on the performance of the index.
7. What is the frequency of data reported in this index?
INREV Annual index includes funds that are reported on a quarterly, semi-annual and annual basis.
INREV Quarterly index includes funds that are reported on a quarterly basis.
8. What are the confidentiality rules for this index?
Performance for any index or sub-index is reported only when the sample includes at least 3 funds from 3 different companies.
9. How is currency conversion dealt with when calculating returns?
To calculate aggregate returns, a local currency methodology is used. All figures that are reported in currencies other than the Euro are converted using the exchange rate of the first day of the quarter for the quarterly indices or the first day of the year for the annual indices. This ensures that no currency effect is taking place at a fund level. Please note that the currency fluctuations that take place at a property level are embedded in the fund reported values and fall outside the scope of local currency conversion.
10. If I wanted specific data on a certain region, can I do this with the INREV Indices?
Yes, from fund allocation to performance measurement, our analysis tool allows peer-to-peer and market comparison. INREV members have access to our index analysis tool which let members slice and dice to make their own tailored indices, subject to confidentiality rules.
11. Does INREV collect historical data?
INREV encourages fund managers to provide the historical and current data of their funds. The Research and Market Information team can support and facilitate historical data collection. To provide data, please contact data@inrev.org.
12. How is data collected?
Data is collected via the Data Platform, where members are able to update their funds using a user-friendly interface. The system runs validations to ensure the quality of the data received.
Members are asked to approve data before submission to INREV.
13. When should we provide and update the data?
Annual data collection starts immediately after year end for a period of up to 12 weeks.
Quarterly data collection starts immediately after quarter end for a period of up to 6 weeks.
Funds can provide estimates if final data are not available by the deadline. In this case, provided data can be amended after the publication date and will be restated in the next publication.
14. How is data validation carried out?
Data validation is carried out in a three step process:
- Systems based validation – the system uses rules-based algorithm to validate data.
- Member approval – the member needs to approve information before submission to INREV
- INREV verification – the INREV team verifies information before inclusion to the database
15. What calculation methodology is used to calculate performance?
The INREV Annual and Quarterly Indices measure net asset value performance of European non-listed real estate funds on an annual and quarterly basis, respectively.
Performance is measured net of fees and costs at fund level.
Performance is calculated using the Modified Dietz methodology. This methodology is used to calculate annual and quarterly net asset value fund performance.
The total return measures the performance over a specific period and does not include projections to the end of the fund’s life.
The total return is computed as follows:
$$ NAV_t - NAV_{t-1} - contributions + redemptions + distributions \over NAV_{t-1} + TwdC - TwdR - TwdD $$
The capital growth is computed as follows:
$$ NAV_t - NAV_{t-1} - contributions + redemptions \over NAV_{t-1} + TwdC - TwdR - TwdD $$
The distributed income return is computed as follows:
$$ ∑distributions \over NAV_{t-1} + TwdC - TwdR - TwdD $$
For more information about Performance Measurement visit the INREV Guidelines on Performance Measurement.
16. Are the indices calculation reviewed by any external organisation?
After the closure of each data collection campaign, an external party performs a review on the INREV Quarterly and Annual Index and performs a validation of the index calculation. This is to ensure the mathematical correctness of the indices; data validation is carried out at the data submission stage.
17. When was the Index launched and when does the data date back up to?
The Annual Index was launched in 2005 and is now published on the last Wednesday of April each year. The history of the index starts in 2001.
The Quarterly Index was launched in 2011 and is now published 8 weeks after quarter end. Owing to the success of the Historical Data Collection project, the history of the INREV Quarterly Index now starts at Q2 2000, previously it started at Q1 2010.
18. What currency is required for data submission?
Data are reported in fund’s reporting currency.
