REIT Trends in Property Sector Allocations by Actively Managed Real Estate Funds
July 21, 2023 | Nicole Funari | Nareit
One of the unique aspects of REITs is the large, actively managed, dedicated REIT investment community; actively managed funds represent 7% of REIT market capitalization and they have been a key element in REITs’ long-term success because of their combined real estate and equity investment expertise and analysis.
Focusing on actively managed dedicated REIT funds and how they’re allocating their assets is critical to understanding the evolution of the REIT market. In a recent analysis of quarterly data, Nareit looked at the 28 largest actively managed real estate mutual funds and how their allocations have changed from the beginning of 2010 to the first quarter of 2023. The funds have $44 billion in assets under management as of the first quarter of 2023, and 96.6% of assets were in REITs. The analysis shows that actively managed real estate funds have significantly shifted their allocations over time, including from traditional sectors to modern economic sectors.
