1 / 5 Stars
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Zacks Investment Research
Standard & Poor's
3 / 5 Stars
#52 in Real Estate
U.S. News evaluated 72 Real Estate Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
The fund has returned 4.39 percent over the past year, 7.73 percent over the past three years, 28.22 percent over the past five years, and 9.78 percent over the past decade.
|Trailing Returns||Updated 02.28.2014|
|Year to date||6.3%|
|3 Years (Annualized)||7.7%|
|5 Years (Annualized)||28.2%|
|10 Years (Annualized)||9.8%|
This fund is fairly concentrated. Comanager Brian Jones says the fund generally holds about 30 to 40 REIT stocks. "We do think that having fewer names and having a less index-like portfolio is an advantage," Jones says. He says the fund is able to generate more alpha—or risk-adjusted returns—from their high-conviction picks. The team believes that the economy will continue to grow—albeit at a slow rate—and that job creation will also be modest at best. As a result, management has overweighted certain speciality sectors that are experiencing demand, like data center buildings where companies store servers. The managers are avoiding areas like office and apartment properties that are highly dependent on job growth. Jones says there has also been a pick-up in global trade, so commercial warehouse properties look attractive. "We think there are areas that will recover faster than other areas of the economy," he says. The fund has returned about 5 percent, on average, over the past five years, as of the end of July. The fund comes with annual expenses of 0.99 percent.
The investment seeks total return through investment in real estate securities, emphasizing both capital appreciation and current income. The fund normally invests at least 80% of net assets in equity securities issued by real estate investment trusts ("REITs") and common stocks and other securities issued by other real estate companies. It defines a real estate company as one that derives at least 50% of revenue from, or has at least 50% of assets in, real estate. The fund may invest up to 20% of net assets in debt securities. It may also invest up to 15% of its net assets in illiquid securities. The fund is non-diversified.
Fees are Above Average compared to funds in the same category.
Neuberger Berman Real Estate Fund has an expense ratio of 1.21 percent.
Risk is Low compared to funds in the same category according to Morningstar.