alternative investments

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 invest in real estate?

Real estate offers high diversification benefits. On a historic basis, there has been a very low correlation between private core real estate and public equities and bond indexes. The investment holdings emphasize quality income producing investments across a broad spectrum of regions. There is also the opportunity for appreciation in private core real estate. Real estate also has high sensitivity to long-term inflation. The high quality real estate holdings mean that there is the potential to move with rising inflation through rent or lease increases. While equity and bond related indexes tend to suffer during periods of rising inflation, core real estate tends to exhibit returns during those periods that are relatively similar to those that they deliver during periods of normal inflation.

 

Investor benefits

Diversification

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.

Lower volatility

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.

Return potential

Over its history, real estate has provided institutional investors with competitive returns relative to other asset classes.

Why choose Russell Investments for real estate?

Flexible investment options

We can provide you with alternative real estate investment products designed to fit your portfolio'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.

Access to real estate investment opportunities

We regularly research the global universe of real estate products and can offer investors access to diverse investment opportunities.

Explore the array of alternative investment strategies:

Private markets  Hedge funds
Infrastructure   Commodities

For investment solutions that are built to deliver your desired outcomes, access our innovative range of multi-asset products to address your portfolio needs.

Return to Funds and strategies

We provide efficient investment solutions for:


Defined benefit plans   Defined contribution plans   Non-profits   Healthcare systems

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