Non-listed real estate funds are an important real estate investment product in the European real estate landscape. These non-listed real estate funds provide investors (eg: pension funds, sovereign wealth funds) with exposure to high quality real estate portfolios in the European region.

Using the INREV non-listed real estate fund index, the risk-adjusted performance and diversification benefits of European non-listed real estate over 2010-2014 is assessed. This is further assessed for European non-listed real estate fund performance by style (core, value-add), country, region, sector (single sector, multi-sector) and structure (closed end, open end). This paper provides important insights into the benefits of European non-listed real estate in a portfolio.