Performance of real-estate assets have shown stability in comparison to equity markets. Importantly their dependence on other asset classes have been low, thus increasing diversification benefits for investors.
During the last few years the number of real-estate funds have grown rapidly. However, the funds typically only invest in one real-estate subclass or geographic area and thus provide only limited diversification benefits. Building a well-diversified and efficient real-estate portfolio has traditionally been possible only for the largest institutional investors.
The hardest part of investing is always predicting the future with accuracy and real-estate investing is not an exception in this either. The world is constantly changing together with the best performing countries or real-estate subclasses. Therefore, we believe that only a well-diversified global approach will yield the best results for our investors.
JAM Real Estate is suitable for institutional and private investors looking for an efficient access to domestic and global real-estate assets. The fund invests in carefully selected real-estate funds and uses its size to negotiate beneficial terms with the asset managers.
JAM Real Estate special investment fund provides an efficient access to global real-estate markets. Fund investments are diversified across real-estate subclasses in a cost-efficient manner. All discounts and retrocessions from the selected target funds are channelled back to the fund – to fully benefit all investors.
Fund aims to minimize both foreign exchange and stock market risks by investing in euro denominated funds owning direct real-estate assets versus REIT’s or stock market listed assets. The funds investing directly in real-estate assets have typically very high minimum subscription amounts for investors and thus limiting access for many. Our fund investors will benefit from the access and the economies of scale, as the fund acts as a single institutional investor in the target funds.
The fund targets to benefit from valuation increases, but the focus is on solid rental yields and cash flows. The fund targets to pay a 1,0 % return on a quarterly basis for the distributing share classes. The fund provides a tax efficient way to invest in real-estate via growth share classes. These share classes are not tax liable on capital gains or distribution payments – allowing the investors to benefit from compounding effects. The capital gains tax will only be realized after the redemptions.
The Fund seeks to generate profits from both cash flow and price appreciation of the underlying target funds. Historically the return-to-risk ratio of real estate investments has been exceptional as compared to for example fixed income or equity investments. Nevertheless, when investing into the Fund, one has to take into consideration that the general development of the real estate sector may also have a negative effect on the development of the Fund. The portfolio manager of the Fund aims to mitigate the impact of single market events by target fund selection and through diversifying the portfolio effectively.
More information about the fund (KIID, fond prospectus, rules, subscription form) can be found in Finnish at gritfundservices.fi/jamadvisors