Insights

During the third quarter of 2024, equity markets continued making historic highs. Private real estate, as reflected by the NFI-ODCE NR, delivered a very slight positive return.

The NCREIF Fund Index - Open End Diversified Core Equity (NFI-ODCE), is an index of investment returns of the largest private real estate funds pursuing lower risk investment strategies utilizing low leverage and generally represented by equity ownership positions in stable U.S. operating...

Core private real estate refers to a category of real estate investments that are typically considered to be the highest quality and least risky within the real estate risk spectrum. Core real estate assets are typically located in large or growing markets and have high occupancy levels with...

The NFI-ODCE is constantly evolving and the 25 private funds that currently make up the index are actively re-allocating to property types that have more attractive growth potential.

We have long believed having an allocation to the NFI-ODCE is important for risk mitigation in your real estate portfolio. Looking at today’s commercial real estate market, the following highlights why having this exposure may help:

For many years, institutional investors have made allocations to private real estate, with many allocating approximately 10% of their assets1. In most cases, these institutional investors set long-term strategic allocations and occasionally make investment decisions based upon short-term...

As one of the fastest growing investment products in the industry, many RIAs are now utilizing, or at least considering, closed-end interval funds. Interval funds offer access to many asset classes, predominantly in private markets, that have been historically difficult for most non-qualified...

Interval funds are classified as registered closed-end funds under the Investment Company Act of 1940, although interval funds have characteristics more like those of an open-end mutual fund. Interval funds offer their shares continuously and shares are redeemed at Net Asset Value (NAV) — similar...