Open-end diversified core funds, such as those tracked in the NCREIF Fund Index — Open-end Diversified Core Equity (NFI-ODCE), remain a compelling investment vehicle for institutional investors seeking exposure to private real estate. Their enduring appeal can be attributed to several key factors: immediate investment access, broad diversification, high-quality properties, conservative management practices and low fees. These characteristics make the NFI-ODCE funds an attractive base for real estate portfolios, offering a solid foundation that investors can build upon with additional, more specialized strategies.
But in the post-pandemic era, concerns about valuation and performance have seen investors heading toward the exits, and redemption queues have become substantial.
The meaning of diversification for ODCE
One of the main draws of the NFI-ODCE is its diversification. Investors gain exposure to a wide range of property types, including o