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The BCEAO Strategic Real Estate Fund consists of global optimally-diversified real estate investments. The fund contains both listed and private real estate. We aim for a stable flow of income and value growth over the long term. We have defined target weights for core and opportunistic strategies. This enables us to offer an optimal risk-return
profile. We spread the investments across different sectors, like retail, residential, logistics/industrial, offices and hotels. The investment horizon is more than five years for private real estate funds, companies, joint ventures and co-investments, and three to five years for listed real estate.
Our regional teams actively manage the investments in the fund. They make investment decisions based on quantitative and qualitative top-down research and in-depth fundamental bottom-up research. This allows us to select the best investments from the real estate universe. In addition, within the real estate portfolio, with the knowledge of the dynamics between private and public real estate, we can selectively profit from valuation differences between the two.
BCEAO Asset Management is a front-runner in sustainability in the real estate sector. As co-initiator of the Global Real Estate Sustainability Benchmark (GRESB), we help to improve the real estate sector’s performance with regard to the environment and society.
In order to reduce the risks within the fund, we spread investment broadly across risk-return strategies, regions, sectors and individual investments. Spread across regions has the biggest impact on diversification. That is why it is an important first step in constructing the portfolio. For optimal risk management, investment in individual investments is capped at 10% of the fund. Moreover, the total NAV of the ten largest investments held will not exceed 35% of the fund’s NAV.
Real Estate Fund