hausInvest is mainly an investment fund for private investors.
Open-ended real estate funds: a solid basis for your investment
Properties are stable tangible assets. By investing in an open-ended real estate funds you acquire an indirect interest in several properties. This will enable you to benefit from the fundamental stability of real estate – without shouldering the administrative burden of a property owner.
Open-ended real estate funds practice a wide risk diversification by location, type of use, tenant structure, and size category of the properties. It is a good way to minimise market risks.
The hausInvest open-ended property fund is suitable for investors interested in a sound long-term commitment.
hausInvest has established itself as a basic investment vehicle primarily for private investors. 97.7 percent of the capital paid into the Fund belongs to private individuals.
This implies a wide spread of the Fund assets in terms of the Fund's investor structure, too. It also makes it easier to foresee liquidity needs and to maintain an adequate liquidity ratio so as to satisfy the redemption requests of investors on demand.
Open-Ended Property Funds are Pools of Segregated Assets
Open-ended property funds are investment funds that hold real assets in pools of segregated assets. The idea underlying these funds,also called German open-ended funds (GEOFs), is to provide an alternative to other investment vehicles, such as equities funds. They are particularly suitable for investors interested in a sound long-term commitment. Shares in these real estate funds are sold to any private investor over whatever amount a given investor wishes to commit. They may be bought or redeemed through the fund company at any time.**
** Any shares acquired on 22 July 2013 or thereafter are subject to the 24-month minimum holding period and the twelve-month notice period. Redemptions of shares acquired before 22 July 2013 may ignore the notice periods, except when exceeding the exemption limit of 30,000 euros per calendar half-year. No redemption is possible whenever the fund company has suspended the redemption of fund shares due to legal requirements.
Investment target of the fund
The hausInvest open-ended real estate fund focuses on the realisation of stable returns on investment from high-yield commercial real estate in economically sound locations inside the European Union. A maximum of 15 percent of the real assets may be invested outside Europe for the purpose of yield optimisation. Here, particular emphasis is placed on achieving a good blend in terms of locations and property types, and on a sound mix of tenants. At the same time, we aim for a high tax-exempt share of the return on investment. The long-term target return of hausInvest is 4 to 6 percent p.a.
The Fund Management of hausInvest invests in high-end real estate (core/core plus) characterised by a high performance potential. The focus is on prime locations. In order to exploit different market cycles on international real estate markets in a comprehensive manner, we pursue an active transaction strategy. It fully reflects the current market situation while considering anticipated developments at the same time. The strategy is also designed to harmonise inverse market trends. It helps to stabilise and optimise the economic profitability of the Fund.
Properties whose asset and location factors no longer satisfy the Fund's requirements will be sold, given a positive market environment, in order to generate net income. The proceeds are re-invested in commercial real estate at newly emergent or re-emergent real estate locations. The young real estate portfolio guarantees the marketability of the properties because it comes with lower maintenance costs. At the same time, the sound age structure enhances the chances for future lettings, appreciation or sales of the properties.
Managing the real estate portfolio according to the principle of risk diversification represents the basis for a stable flow of income. The wide geographic spread of the real estate and the optimal division of the portfolio by size categories as well as by main types of use help to minimise possible market risks. Moreover, a balanced spread of investments across various real estate types and a large number of tenants who represent different industry sectors increase the independence from economic fluctuations within a given industry.
hausInvest principally keeps a strategic supply of liquid assets equivalent to around 15 percent of the Fund assets on hand, going far beyond the statutory requirement of a 5-percent minimum. The stated goal is to realise interest earnings in line with money market levels from conservative, risk-averse cash investments.
The currency positions of hausInvest are almost fully hedged. This approach underlines the responsible handling of currency risks.