Looking backwards and forwards

The end of the year is a time to look both backwards and forwards.

Real estate has had a remarkable year, with record low interest rates causing record high asset values and transaction volumes. While the US Federal Reserve is likely to increase rates at some point in 2016, in Europe quantitative easing means rates are likely to stay low for some time yet, creating a favourable environment for real estate.

Looking forward to the future for INREV, the new business plan for the period 2016 to 2018 is a priority for us. The are many new and important elements to this.

Having introduced a new Performance Measurement Module to the INREV Guidelines at the end of this year, the natural next step is to introduce a new risk management element to the Guidelines - logical as performance and risk go hand in hand. 

In an effort to increase transparency in the way that fund managers work, we will be carrying out a survey which investigates operational benchmarks for managers, looking amongst others things at key metrics supporting organisational benchmarking.

We are also keen to improve the role and impact of the INREV Indices, particularly by increasing the coverage of funds. Our ambition is that the number of funds covered in the INREV Index increases to close to 400 in the next 12 to 18 months, from the current number of 300.

On the research side, we are looking to undertake work into whether such a thing as performance persistence really exists, as well as investor transparency. With regards to public affairs it is a crucial period regarding the ‘big four’ of regulation: AIFMD, BEPS, Solvency II and LTIF, and we will be continuing to work with policy makers and our members to put forward the views of the sector.

In terms of training, we are now starting a period of co-operation with the University of Reading Henley Business School to offer a certificate to successful participants. For events, we are looking to maintain the consistent high quality and to restructure and reposition some events in order to improve them even further.

Finally, in terms of communication, we are also looking to improve the way we communicate with members digitally. To do this we will use more targeted communications, which will be supported by the new CRM and improved online communications.

So we, like you, have a big couple of years ahead. It only remains to say we hope you have a happy Christmas and fantastic new year, and I look forward to seeing you at our first event in 2016, our Investor Intentions Roadshow.

Matthias Thomas, INREV CEO