Investing in real estate is one of the favorite choices of European managers and investors. On this occasion, we have chosen to analyze the best funds for investing in real estate, according to Morningstar.
To do so, we have selected the funds that invest in the real estate sector that has done best over the last three years in the Real Estate – Global Direct category in euros and those that are achieving the highest returns this year in the Global Indirect category in euros.
What are the best real estate funds in euros?
UBS (Lux) Real Estate Funds Selection – Global (EUR)
The fund aims to provide investors with efficient access to a range of carefully selected real estate investment strategies. These strategies are implemented by offering a series of sub-funds, each of which has its own set of investment objectives, policies and investment guidelines; and which are designed to provide diversified exposure to a defined range of real estate markets, property types and risk profiles.
Underlying investments related to real estate held by the fund include:
- Investments in a target fund that may be made directly or through the purchase of promissory notes reflecting the performance of such target fund.
- Securities of real estate companies or real estate holding companies listed and traded on a regulated stock exchange located in any jurisdiction.
- Derivative contracts or other financial instruments intended to passively earn the underlying investment return of a defined real estate market, but not controlling interests in physical real estate.
Partners Group Global Value Real Estate SICAV I (EUR)
Partners Group Global Value SICAV offers investors broad diversification across geographies, funding stages and instruments, while utilizing Partners Group’s relative value investment approach to systematically overweight those segments and instruments that offer superior value at any given time, in order to significantly enhance risk-adjusted returns. Its legal structure allows investors to subscribe and redeem shares on a monthly basis, thus avoiding the long lock-up periods common to most private equity funds.
The investment objective of the SICAV is to obtain superior returns and achieve medium to long-term capital growth by investing in private equity.
The fund aims to offer investors broad diversification, utilizing the ability to invest across the full range of private equity opportunities: primary, secondary, direct and listed private equity investments, across all stages of funding and geographic regions. By systematically overweighting segments and instruments that offer superior value at any given time, risk-adjusted returns can be significantly enhanced. This is referred to as a relative value investment strategy.
Janus Henderson Horizon Global Property Equities Fund G2 EUR Acc
Actively managed, high conviction investment fund that invests in the best ideas of the managers over real estate securities and listed REIT funds, in the interests of achieving long-term capital appreciation.
The objective of the Janus Henderson Horizon Global Property Equities is to outperform the FTSE EPRA Nareit Developed Index by at least 2% per annum before expenses over any five-year period.
The broad investable universe and selective approach allows the management team to identify companies with attractive dividend yield and growth characteristics.
This strategy is managed by a global team of experts based in Singapore, the United Kingdom and the United States, with over 90 years of combined investment experience.
Nordea 1 – Global Real Estate Fund BI EUR
The investment objective of this fund is to achieve long-term capital growth through investment in equity securities of companies worldwide whose business is primarily related to the real estate sector. It is actively managed. The benchmark is used solely for performance comparison purposes. The risk characteristics of the fund’s portfolio may bear some resemblance to those of the benchmark.
As part of the ESG integration process, the Nordea 1 – Global Real Estate Fund does not invest in companies engaged in the production of illegal or nuclear weapons, and in companies that have an exposure to coal mining that exceeds a predefined threshold.
AXA World Funds – Global Real Estate Securities I Capitalisation EUR
The objective of the fund is to achieve long-term capital appreciation, expressed in euros, by investing primarily in listed equities issued by companies engaged in the real estate sector, which are domiciled in Europe or which carry out the majority of their activities there.
“Risk assets advanced positively on easing inflation, the reopening of the Chinese economy and expectations that the U.S. and Europe will avoid recession this year due to a more resilient economy than expected. In addition, the U.S. economy grew faster than expected in the fourth quarter.
In the European real estate sector, profitability was positive for all subsectors. Hotel and residential assets posted positive relative returns, up 20.7% and 12.6%, respectively. On the other hand, health care and diversified had a negative relative performance, with gains of 4.1% and 6.1%, respectively. The European real estate index outperformed the European generalist equity index, with the FTSE EPRA NAREIT Developed Europe Capped 10 % returning +8.9 % versus +6.7 % for the STOXX Europe 600.”Frédéric Tempel, fund manager.