Investment funds to take advantage of the 'pull' of the real estate market

The expectations of global growth have deteriorated throughout the year, reflecting the increase in risk with respect to the commercial and technological war between the two largest economies in the world and the threat of imposing tariffs on exports from other major economies. To the USA.

This greater weakness of the global economy should lead central banks towards a more accommodative monetary policy in the coming months, as already pointed out by both the Federal Reserve (Fed) and the European Central Bank (ECB), supporting asset prices real estate The strength of the domestic economy, mainly in the US, record employment levels and the consequent increase in the availability of money in the hands of the public, should also support the fundamentals of the real estate market.

FUNDS TO WIN IN THE SECTOR
Real estate assets can increase returns and reduce the risk of a portfolio, offer high dividend yields with consistent growth over time, their risk-adjusted returns are higher than those of stocks and bonds and allow diversification through types of quality assets.

Among the funds that invest their portfolio in listed real estate companies, with the highest rating, five stars of VDOS, the best result during the year is obtained by the capitalization class A dollars of JANUS HENDERSON GLOBAL REAL ESTATE with a revaluation of 23, 16% in the year. At one year, its profitability is 14.20%, with a volatility data of 14.20%.

Taking as reference the FTSE EPRA / NAREIT Global index, it invests mainly in securities of companies involved or related to real estate. Among the largest positions in the fund's portfolio are names such as Alexandra Real State Equities Inc (4.10%) Prologis Inc (4.10%) Goodman Group (3.80%) CICI Properties Inc (3.40%) and Link REIT (3%). A minimum initial contribution of $ 2,500 (approximately 2,243 euros) is required to subscribe this fund that applies a fixed commission of 1.25 percent. It has assets under management of 110 million dollars (approximately 98.71 million euros).

With a profitability of 17.77% for the year, MSIF ASIAN PROPERTY class A in dollars aims to achieve long-term attractive and risk-adjusted returns, investing in real estate listed in regulated markets in Asia and Oceania.

They combine a value-oriented 'bottom-up' upside-down investment strategy with a 'top-down' downward trend that seeks a diversified exposure, overweight real estate markets that in their opinion offer the most attractive valuations.

Reference your management to the FTSE EPRA / NAREIT Asian Real Estate Net Total Return Index, including among the largest positions in your portfolio Link REIT shares (8.75%) Sun Hung Kai Properties Ltd (7.86%) Hongkong Land Holdings Ltd (5.67%) Sumitomo Realty and Development Co. (4.58%) and Mitsui Fudosan Co. Ltd (4.44%). With an equity of 124 million euros (approximately 111.27 million euros), it taxes its subscribers with a fixed commission of 1.40 percent.

BET FOR THE INCOME
With the focus on obtaining incomes higher than the sector average, the B class of the DPAM INVEST B REAL ESTATE EUROPE DIVIDEND fund has obtained a return of 14.75% in January and 7.39% at one year, period in which it records a highly controlled volatility of 10.3%, which positions it among the best in its category for this concept, in the fifth quintile.

Invests in securities representing the real estate sector issued by companies that either have their registered office or a significant part of their assets in profit centers or decision centers in Europe and that generate a dividend yield or a higher expected dividend yield than the market average. The largest positions in the fund's portfolio include names such as Argan (6.6%) Vonovia (4.70%) Merlin Properties (3.80%) Leg Immobilien (3.70%) and Covivio (3.40%). Its fixed commission is 1.50 percent and a deposit of 0.04 percent.

The demand for sustainable high-tech buildings is especially strong, particularly those that have abundant collaborative office space and capable of offering good amenities. New emerging sectors, such as data centers, buildings built for student housing and prefabricated homes present opportunities for better behavior.

Paula Mercado is director of VDOS analysis.