News and Insights

Sharing in real estate market gains through funds

Real estate offers a number of advantages. However, the market is not without its obstacles for investors. These can be elegantly circumvented using real estate funds.

Real estate is a popular asset class, and with good reason: the benefits of real estate investments range from robust returns and low correlation with other financial investments all the way to tax advantages. The various segments of the real estate market – for example, residential real estate, office and business premises, or logistics properties – allow for broad diversification and open up investment opportunities for focused and specialized portfolios, which additionally can be given regional or global orientations

Know-how and experience are fundamental

Individual buildings are not readily accessible for many investors for investment purposes. Even if a building can be acquired, the investment is illiquid, the money is tied up, and there is no diversification. Investment success is therefore inextricably linked to the building’s change in value or income from rents. The fixed location and virtually unalterable purpose offer no flexibility. Added to this is the complexity of the real estate market. This makes know-how and experience crucial factors for success when acquiring real estate and during its subsequent upkeep.

Real estate funds let investors participate in a portfolio that is compiled and managed by experts by buying shares in the same way they would in an equity or bond fund. The advantages are clear. When an investor invests in a real estate fund, they benefit from the skills and expertise of a real estate expert. What is more, real estate funds are liquid, the shares of listed funds can be traded on a daily basis, and investments are possible with low minimum amounts. As a result, they are an attractive option for many investors. Such funds can serve as core investments or as components of a broader investment strategy and may offer tax advantages.

Varying orientations

As one of the leading providers of real estate investments, Global Real Estate at Credit Suisse Asset Management offers a broad range of real estate solutions encompassing various regions and investment types. The real estate funds – totaling over 15 – are varied and cover a number of strategies and risk parameters. While some funds cover a specific segment and/or a certain region, there are others that have managed and upgraded a carefully constructed core portfolio for decades. Yet others are focused on trendsetting projects or are dedicated to the far-reaching changes ushered in by sustainable construction methods or new forms of living. Many combine several of these aspects, making them more broadly positioned, and also provide the option of investing at the international level.

The COVID-19 pandemic has impacted real estate markets. Alongside dramatic developments such as the blow dealt to the traditional retail business, there are also segments that have proven to be robust and full of potential. For residential real estate in particular, the opportunities at good locations and as part of forward-looking approaches (upgrading, densification, new ways of living) appear to be intact. You, too, can become a real estate investor. Place your trust in the expertise of Switzerland’s largest provider of real estate investments. Global Real Estate at Credit Suisse Asset Management has top-tier access, an excellent insight into both the Swiss and global real estate markets, and, thanks to its many strategies, a solution to suit every investor.

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