Real Assets Funds Monitor Period End: October 2017

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1 Period End: October 217 CONTENTS Page Summary 2 Focus: Changes to our Fund Classifications 3 October Performance by mandate: Global Real Estate Funds 4 US Real Estate Funds 5 European Real Estate Funds 6 Asian Real Estate Funds 7 Global Infrastructure Funds 8 Regional Infrastructure Funds 9 Income Funds 1 Alternative Strategies Funds 11 Author: Alex Moss alex.moss@consiliacapital.com September 217

2 Summary This month we have changed the layout and content to reflect changes to the classifications of Funds and Indices in our database. The report is now divided into the following sections: 1) A summary of October performance by fund mandate and size Mandate Oct. return US$% Regional Infrastructure Funds 6.21 Asian Real Estate Funds 1.15 Global Infrastructure Funds.29 Alternative Strategies -.2 Income Funds -.47 Global Real Estate Funds -.53 US Real Estate Funds -.58 European Real Estate Funds ) A summary of 3Q 217 performance by fund mandate and size Mandate YTD 217 return US$% Regional Infrastructure Funds European Real Estate Funds Asian Real Estate Funds 18.3 Global Infrastructure Funds Global Real Estate Funds 8.35 Alternative Strategies 8.33 Income Funds 7.85 US Real Estate Funds ) Focus: Fund classification modifications (3) We have decided to modify the classification of the funds in our database, so that we may more easily identify and analyse the most pertinent trends going forward, i.e. the subjects which will comprise our research agenda. We believe that the key topics, and the areas we are interested in exploring, include, but are not limited to: Real Estate vs Infrastructure : Performance, Growth of AuM, range of products and opportunities for blending Active vs Passive : Cost, Performance and Strategy Divergence Alternative Strategy Funds : Income, sustainability, City/Prime exposure, Multifactor and Smart Beta products 4) Detailed performance statistics by mandate (ps 4-12) for October 217 This month we look at the data for October 217. For each mandate we show: the dispersion of returns by Fund AUM, aggregate performance by size, active vs passive performance, Benchmark Index returns, and the best performing active funds above an AuM threshold for each mandate. For consistency, all returns are rebased in US$. Finally, it is important to note that there are no recommendations or investment advice contained in this publication, and that it is not intended for retail investors. This report represents only a very small summary of the outputs of our database, and the bespoke research and advisory service work we undertake for clients. For further details of our work please contact us. 2

3 Focus: Fund Classification modifications We have decided to modify the classification of the funds in our database, so that we may more easily identify and analyse the most pertinent trends going forward, i.e. the subjects which will comprise our research agenda. We believe that the key topics, and the areas we are interested in exploring, include, but are not limited to: Real Estate vs Infrastructure : Performance, Growth of AuM, range of products and opportunities for blending Active vs Passive : Cost, Performance and Strategy Divergence Alternative Strategy Funds : Income, sustainability, City/Prime exposure, Multifactor and Smart Beta products In order to present the evidence for these subject areas in a clearer manner, we have made the following changes to our database and to the presentation of the results in our monthly. 3 1) Global Real Estate and Global REIT classifications have been merged (p4). A number of the Global REIT funds were aimed purely at the Japanese retail market, and have caused some confusion regarding the difference between the two, so we have decided to combine them into one Global Real Estate category. 2) Active mandates are now shown separately from passive (ETF) mandates. Previously they were shown together, but separating them out allows us to identify the growth and relative performance of passive vehicles. 3) Individual Fund performance will no longer be broken down by size. We will still show Large, Medium and Small classifications (where they apply) at the aggregate, unweighted average level but felt that the size classification by mandate was unnecessarily detailed. 4) A minimum size cut off for Individual Fund performance has been introduced. Previously individual fund performance was shown grouped by size, with no minimum AuM requirement. This led to a number of occasions where the best performing funds were too small be to be investible. Therefore, to make the content more relevant for practitioners we have imposed a minimum AuM criteria for active funds for each mandate, apart from Alternative Strategies. 5) Regional mandates only are shown this month, not country mandates. We had previously included Japan as a separate classification due to the divergence of performance from Asia. This month we have taken out Japan, so that all the mandates are regional. Next month we will introduce a separate country section. 6) Focus on Income (p1). Given the increased focus on Income as a strategy, funds which have this objective are now shown separately. 7) Alternative strategies Funds are shown separately (p11). There appears to be great interest in non-traditional benchmark strategies, be they centred on Smart Beta, Multifactor methodology or based on Property type. We have therefore introduced a separate section for these Funds and Indices, and included Real Assets Funds in this section.

4 Global Real Estate Funds Returns: October AuM US$m TR % US$ Changes to our Database: Global Real Estate and Global REIT Funds are now combined, and split between active and passively managed. By Fund size and Style Fund October 217 rnumber of Funds Total AuM (US$m) YTD % Global Active Large , Global Active Medium , Global Active Small , Global Passive , All Funds , Global index -.45 n/a n/a 6.83 Best Performing Funds Global Active Funds above US$5m AuM Yuanta Global Real Estates Fund Open-End Fund Robeco Capital Growth Funds - Property E SICAV James Alpha Global Real Estate Investmen Open-End Fund Sarasin IE Global Real Estate Equity GBP Open-End Fund James Alpha Global Real Estate Investmen Open-End Fund LLB Aktien Immobilien Global CHF Open-End Fund Goldman Sachs International Real Estate Open-End Fund S-e-banken Bygg-eiend Open-End Fund Fidelity Advisor International Real Estate Open-End Fund VALIC I - Global Real Estate Fund Variable Annuity Global Passive Funds no size restriction ishares International Developed Property ETF Vanguard Global ex-u.s. Real Estate ETF.42 5, ETF SPDR Dow Jones International Real Estate.23 3, ETF ishares International Developed Real Esta ETF ishares Global Real Estate Index ETF ETF 4

5 US Real Estate Funds Returns: October 217 AuM US$m TR % US $ Changes: Funds are now split between active and passive. Funds with a specific focus or style such as Income, Mortgage REITs, Bull/Bear, and Leveraged are now shown under Alternative Strategy Funds and Indices By Fund size and style Fund October 217 rnumber of Funds Total AuM (US$m) YTD % US Active Large , US Active Medium , US Active Small US passive , All Funds , US Index -1.9 n/a n/a.64 Best Performing Funds US Active Funds above US$5m AuM Fund Oct 217 TR % AuM US$ Sharpe Ratio Volatility Type Baron Real Estate Fund , Open-End Fund CGM Realty Fund Open-End Fund Cohen & Steers Total Return Realty Fund I Closed-End Fund Sterling Capital Stratton Real Estate Fund Open-End Fund Neuberger Berman Real Estate Fund Open-End Fund TIAA-CREF Real Estate Securities Fund.88 2, Open-End Fund Third Avenue Real Estate Value Fund/US.87 1, Open-End Fund Griffin Institutional Access Real Estate Fu.71 1, Closed-End Fund Neuberger Berman Investment Funds Plc Open-End Fund Invesco Real Estate Fund.7 1, Open-End Fund US Passive Funds no size restriction Fund Oct 217 TR % AuM US$ Sharpe Ratio Volatility Type Wilshire US REIT ETF ETF ishares U.S. Real Estate ETF.5 4, ETF Vanguard REIT ETF , ETF SPDR Dow Jones REIT ETF , ETF Schwab U.S. REIT ETF , ETF 5

6 European Real Estate Returns: October AuM US$m TR % US$ Changes: Funds are now split between active and passively managed. By Fund size and style Fund October 217 rnumber of Funds Total AuM (US$m) YTD % European Active Medium , European Active Small European passive , All Funds -.29 n/a n/a European Index -1.9 n/a n/a.64 Best Performing Funds European Active Funds above US$5m Aberdeen Investment Funds ICVC - Proper OEIC TR Property Investment Trust PLC - Ordina.62 1, Investment Trust Premier Funds - Premier Pan European Pr Open-End Fund BNP Paribas Investment Partners - Real E SICAV F&C Real Estate Securities Fund Open-End Fund Kapitalforeningen Institutionel Investor T Open-End Fund CSIF CH Europe ex CH Real Estate Index Open-End Fund MITTU NO SAIFU Europe REIT Fund/Carrer Open-End Fund Allianz Immo SICAV Mirova SA Foncier Investissement FCP European Passive Funds no size restriction ishares European Property Yield UCITS ET.22 1, ETF LYXOR FTSE EPRA/NAREIT Developed Europ ETF ishares Europe Developed Real Estate ETF ETF BNP Paribas Easy FTSE EPRA/NAREIT Euro ETF ishares UK Property UCITS ETF GBP Dist -.7 1, ETF 6

7 Asian Real Estate Funds Returns: October AuM US$m TR % US$ Changes: Funds are now split between active and passively managed. By Fund size and style Fund October 217 rnumber of Funds Total AuM (US$m) YTD % Asian Active Medium , Asian Active Small Asian passive All Funds , Asian Index 1.18 n/a n/a Best Performing Funds Asian Active Funds above US$1m AuM Kotak India Equity Fund Open-End Fund Asia REIT Research Open - Monthly Settle Open-End Fund Henderson Horizon - Asia-Pacific Propert Open-End Fund Henderson Global Select Funds - Asia Pac Fund of Funds Avadis Anlagestiftung - Immobilien Asien Open-End Fund China Merchants CSI 3 Real Estate Equ Open-End Fund B&I Asian Real Estate Securities Fund Open-End Fund B&I Pan-Asian Total Return Real Estate Se Open-End Fund Swisscanto CH Index Real Estate Fund Asi Open-End Fund Eastspring Asia Pacific REITs Fund Open-End Fund Asian Passive Funds no size restriction BMO MSCI Asia Pacific Real Estate ETF ETF CSIF CH Asia Real Estate Index Open-End Fund Lippo Select HK & Mainland Property ETF ETF Guggenheim China Real Estate ETF ETF ishares Asia Property Yield UCITS ETF USD ETF 7

8 Global Infra Funds Returns: October AuM US$m TR % US$ Changes: Funds are now split between active and passively managed. By Fund size and style Fund October 217 rnumber of Funds Total AuM (US$m) YTD % Global Infra Active Large , Global Infra Active Medium , Global Infra Active Small , Global Infra Passive , All Funds , Global Infra index -.45 n/a n/a 6.83 Best Performing Funds Global Infrastructure Active Funds above US$5m Tata Infrastructure Fund Open-End Fund OP-Ilmasto Open-End Fund Hana UBS Global Infra Securities Master Unit Trust BlackRock Global Funds - World Agricultu Open-End Fund Credit Suisse Lux Infrastructure Equity Fu Open-End Fund Cohen & Steers Global Infrastructure Fun Open-End Fund Credit Suisse Lux Infrastructure Equity Fu Open-End Fund Investors Global Infrastructure Class Open-End Fund Frontier MFG. Core Infrastructure Fund Open-End Fund RARE Emerging Markets Fund Unit Trust Global Infrastructure Passive Funds no size restriction ishares Global Infrastructure UCITS ETF U ETF SPDR S&P Global Infrastructure ETF ETF ishares Global Infrastructure ETF.62 1, ETF db x-trackers S&P Global Infrastructure U ETF ishares Global Infrastructure Index ETF ETF 8

9 Regional Infra Fund Returns: October AuM US$m TR % US $ Changes: Funds are now split between active and passively managed. Real Assets Funds are now classified as part of Alternative Strategies. By Fund size Fund October 217 rnumber of Funds Total AuM (US$m) YTD % Regional Infra Active Medium , Regional Infra Active Small Regional Infra Passive All Funds , Best Performing Funds Regional Infrastructure Active Funds above US$1m AuM HDFC Infrastructure Fund Open-End Fund IDFC Infrastructure Fund Open-End Fund Franklin Build India Fund Open-End Fund L&T Infrastructure Fund Open-End Fund Prudential ICICI Infrastructure Open-End Fund Columbia India Infrastructure ETF ETF Canara Robeco Infrastructure Open-End Fund SBI Infrastructure Fund-Series I Open-End Fund Mirae Asset Asia Pacific Infra Sector Secu Unit Trust IBK India Infra Securities Investment Trus Unit Trust Regional Infrastructure Passive Funds no size restriction First Asset Active Utility & Infrastructure ETF Reliance ETF Infra BeES ETF 9

10 Income Funds Fund Returns: October AuM US$m TR % US$ By Fund size Fund October 217 rnumber of Funds Total AuM (US$m) YTD % Income Active Large , Income Active Medium , Income Active Small Income Passive All Funds , Best Performing Funds Income Active Funds above US$1m AuM Phillip Singapore Real Estate Income Fun Open-End Fund TMB Property Income Plus Fund Open-End Fund Asia High Yield REIT Fund/SMAM , Open-End Fund Asia High Yield REIT Fund Annual Settleme Open-End Fund NBI Global Real Assets Income Fund Open-End Fund Brookfield Real Assets Income Fund Inc n/a n/a Closed-End Fund Cohen & Steers REIT and Preferred Income.62 1, Closed-End Fund Versus Capital Multi-Manager Real Estate.42 1, Closed-End Fund JPM Global Property Income Fund Open-End Fund Lazard US Realty Income Portfolio Open-End Fund Income Passive Funds no size restriction Global X SuperDividend REIT ETF ETF Guggenheim S&P High Income Infrastruct ETF VanEck Vectors Mortgage REIT Income ETF ETF VanEck Vectors High Income Infrastructur ETF 1

11 Alternative Strategies Funds and Indices Returns: October AuM US$m TR % US $ Overview of Funds by Strategy Strategy October 217 return Number of Funds Total AuM (US$m) YTD (US$%) Active ETF Cities Equal Weights Housebuilders , Inverse Leaders , Leveraged Bear Leveraged Bull Leveraged Mortgage REIT Mortgage REIT , Multifactor Prime RE Quant Real assets n/a Real Assets , Residential Small cap Sustainable

12 Best Performing Funds October 217 Fund Oct 217 TR % AuM Sharpe Ratio Volatility Type SPDR S&P Homebuilders ETF , ETF Direxion Daily Real Estate Bear 3x Shares ETF QuantX Risk Managed Real Return ETF n/a n/a ETF AllianceBernstein - Dynamic All Market Portfolio SICAV PowerShares Active US Real Estate Fund ETF Lazard Real Assets and Pricing Opportunities Portf n/a n/a Open-End Fund First Trust Heitman Global Prime Real Estate ETF n/a 8.35 ETF Prior & Nilsson Realinvest Open-End Fund Deutsche Real Assets Fund Open-End Fund Hartford Global Real Asset Fund/The Open-End Fund Best Performing Funds YTD Fund YTD 217 TR % AuM Sharpe Ratio Volaility Type ETRACS Monthly Pay 2xLeveraged Mortgage REIT E ETN Prior & Nilsson Realinvest Open-End Fund SPDR S&P Homebuilders ETF ETF Nuveen Real Asset Income and Growth Fund Closed-End Fund Quaero Capital Funds Lux - Infrastructure Securitie SICAV MKB Real Estate Fund of Funds n/a n/a Fund of Funds AllianceBernstein - Dynamic All Market Portfolio SICAV Planetarium Fund - Riverfield Real Assets Open-End Fund ishares Mortgage Real Estate Capped ETF ETF Euronext Reitsmarket Global Balanced NR n/a n/a n/a Index Best Performing Funds 216 Fund 216 TR % AuM Sharpe Ratio Volaility Type ETRACS Monthly Pay 2xLeveraged Mortgage REIT E ETN PowerShares KBW Premium Yield Equity REIT Port ETF FIP Brasil Energia Open-End Fund Dynamic Diversified Real Asset Fund Open-End Fund ishares Mortgage Real Estate Capped ETF , ETF T Rowe Price Real Assets Fund Inc , Open-End Fund Hartford Global Real Asset Fund/The Open-End Fund IQ US Real Estate Small Cap ETF ETF AllianceBernstein - Dynamic All Market Portfolio SICAV Prior & Nilsson Realinvest Open-End Fund 12

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