Hamburg-based boutique Vilico Investment Service GmbH and KVG Hansainvest have launched distribution-oriented equity fund "Immobilien Werte Deutschland".
This is the first time a Ucits fund to be offered, with which private and institutional investors can focus on investing in the most profitable real estate companies active in the German market. The fund provides a highly liquid, daily tradable alternative to often illiquid open or closed real estate funds as well as hard to reach real estate direct investments.
"In order to bundle the most attractive equities in Immobilien Werte Deutschland, we analyse around 70 listed real estate companies operating in Germany and select the 20 stocks with the highest sustainable dividend yields and projected increases in net asset value," explains fund manager NFS Capital AG on the investment process .
The weighting of the individual securities is based on the proportion of their market capitalisation in the total market capitalisation of the fund portfolio (at least 1.5% / max 10%). The portfolio is reviewed and adjusted semi-annually. Up to 10% of the portfolio can be invested discretionally in a special situation.
The values allocated to the current portfolio comprise the residential (51%), commercial (21%), asset management (12%), development (6%) and other (10%) subsectors and have an average market capitalization of 4, EUR 50 billion. The average dividend yield on the portfolio is 4.60% before fund costs and average funds from operations (FFO) is around 6%.
"With Immobilienwerte Deutschland, we offer investors a regulated special fund with which they can participate in attractive annual dividend distributions and the future share price development of the most successful German real estate stocks," says Stefan Bülling, managing director of Vilico Investment Service.