The recommended investment horizon is long-term.
RBC Dexia Investor Services, the world's leading custodian bank in terms of customer satisfaction, is taking another step forward in diversifying and expanding its scope of operations to exceed its clients' business expectations in the financial investment sector by offering institutional investors and portfolio managers the opportunity to operate in Real Estate Investment Funds (REITs). Luxembourg, where RBC Dexia Investor Services is a leader, has become a hub for REITs. In recent years, many developers have chosen Luxembourg as a platform to structure their investments, and since 2005, the number of funds has increased by 50%. According to ALFI (Luxembourg Investment Funds Association), the REIT market comprises €7.7 trillion in gross assets, of which approximately 85% comes from institutional funds. Assets invested in real estate are expected to grow significantly following the influx of new funds, as they position themselves as an alternative to bonds and market assets, according to FCP (Loxembourg's Fonds Comun de Placement). FCP allows multinational pension funds to create a tax-advantaged asset reserve to reduce costs and increase efficiency. These funds are becoming the investment vehicle of the future, as they generate returns and offer protection against inflation, in addition to providing low volatility and diversifying portfolio risk. Their profitability stems from the management of the portfolio and the increase in its capital value upon sale of the property, making them very secure long-term investments. These types of funds, whose investments are earmarked for the purchase of real estate (homes, offices, commercial premises, and parking spaces, whether in entire buildings, for exclusive or mixed use, or as individual units), have three modalities: residential, market-rate, and mixed. They are intended for the purchase of properties with the aim of generating rental income, among other options. The residential funds have up to 90% of their assets invested in residential properties, the market-rate funds have less than 50% of their assets invested in residential properties, and the mixed funds have between 50% and 90% of their assets invested in other types of real estate, such as commercial premises, offices, etc., supplementing their portfolio with fixed-income securities.
Any questions about this news?
Talk to Coexia, the AI of the foreign trade
International business service providers
Moldtrans
Grupo Moldtrans is a comprehensive logistics operator with extensive experience in land, air and sea transport.read more...
FedEx Express
FedEx Express is the world's largest express transportation company. It offers a shipping service.read more...
AROLA
AROLA, through its various business areas, offers a comprehensive and customized logistics service.read more...
Pantoja Logistics Group
Pantoja Grupo Logístico is a 360° operator with 100% Spanish capital and family origins.read more...
DHL Express
DHL is the world leader in the logistics sector. DHL's divisions offer a portfolio of...read more...