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European non-listed real estate funds are the weakest regional performers in the latest Global Real Estate Fund Index (GREFI), while Asia-Pacific tops the quarterly index.

GREFI draws together data from the Asian and European Associations for Investors in Non-listed Real Estate Vehicles (ANREV and INREV) and the National Council of Real Estate Investment Fiduciaries (NCREIF).

For the final quarter of 2014, funds in Asia-Pacific turned in a performance of 3.6%, ahead of the US at 3.1% and Europe at 2.4%. Total global performance for the quarter was 2.9%. However, on an annual rolling basis, the US remains dominant at 11.8% versus 9.4% for Asia-Pacific and 8.9% for Europe.

The index also shows an uptick in the performance of non-core funds over core funds in the final quarter of 2014 at 4.1% and 2.6%, respectively. On a rolling annualised basis, non-core funds hit 10.6% in 2014 - still ahead of core at 10%. For the purposes of the index, the ‘non-core’ categorisation includes a mix of value-added and opportunity funds though both of these styles are not necessarily evenly represented in all three geographic regions.

'These statistics confirm investors’ current, generally positive view of non-listed real estate vehicles. The uptick in quarterly performance of funds from Asia-Pacific is an intriguing development. While much of the growth is attributable to the strength of opportunity funds, particularly in Japan and China, it raises interesting questions about the region’s improving prospects over the longer term,' said Henri Vuong, INREV director of research and information.

The latest GREFI report is the first full year version since the index was officially launched last April.