The relative weakness contrasts with the robustness of the Asia-Pacific region's underlying real estate market and the solid performance of global real estate funds of funds.
China's state pension fund and self-regulating fund body welcomed the launch of the first funds of funds, but cautioned asset owners to use the vehicles for long-term diversification.
With mainland mutual fund managers set to launch their first funds of funds potentially as early as next month, industry participants point to challenges these products face.
The mainland securities regulator has given approval for asset managers to manufacture funds of funds, and some firms have been working towards this in recent months.
There have been a lot of new entrants to the private-equity market in China in the past year, but limited partners are becoming more discerning about who they invest with.
The fund of hedge funds manager is improving risk management transparency as it continues to build its Asia business, says Antonio Mu±oz-Su±T, head of EIM USA.