Investing in real estate
From listed to unlisted; domestic to global; core to opportunistic; traditional to emerging managers, investing in real estate should have no boundaries.
Why choose Russell Investments for your real estate investment needs?
Flexible investment options
We can provide you with alternative real estate investment products designed to fit your fund's diversification objectives and liquidity needs. For example, you can choose between our public or private real estate strategies.
Global experience in real estate research and investment management
We have been researching real estate managers for over 30 years and have offered multi-manager strategies for over 25 years. Our real estate team is located in six different offices around the world and our analysis covers market trends, investment strategies, and public and private real estate investment products.
Recognized manager due diligence
Six years running, Russell Investments was voted among the top two in manager due diligence by participants in a 2014 FundFire survey of consultant relations professionals.¹Access to real estate investment opportunities
We regularly research the global universe of real estate products and can offer investors access to diverse investment opportunities.
Why invest in real estate?
Historically, real estate investments have had a low performance correlation with stocks and bonds. Because returns are driven by different factors than other asset classes, investing in real estate can also help investors diversify the risks in their portfolios.
Over its history, real estate has provided institutional investors with competitive returns relative to other asset classes.
Lower volatility than other asset classes
From an investment perspective, the leasing and financing structures found in real estate investments are long term in nature and have historically contributed to relatively stable cash yields.
Additionally, private real estate returns are largely dependent on periodic asset valuations and therefore do not exhibit the same level of volatility as returns from investments listed on exchanges.
Private real estate investments are not subject to the same regulatory requirements as registered investment products. They can be highly illiquid and can charge higher fees than other investments.
1Russell Investments has been ranked for having best manager due diligence practices consecutively every year since 2009. Source: Shagrin, M. “Russell's Manager Research Toughest in Industry: Survey”, FundFire. Issue date: August 1, 2014. FundFire is a source of competitive intelligence for the separately managed account industry. This award was discontinued in 2015.
Diversification and multi-asset solutions do not assure a profit and do not protect against loss in declining markets.
Specific sector investing such as real estate can be subject to different and greater risks than more diversified investments. Declines in the value of real estate, economic conditions, property taxes, tax laws and interest rates all present potential risks to real estate investments. Fund investments in non-U.S. markets can involve risks of currency fluctuation, political and economic instability, different accounting standards and foreign taxation.