XP launches a fund with real estate assets in major cities around the world

A new fund from XP Asset, the fund management arm of XP Investimentos, will focus on accessing real estate assets in cities with good quality of life. The project, called Schroeder Global Cities, was launched on Thursday (17) and will feature shares of up to 70 publicly traded companies distributed in the world’s major cities.

According to Infomoney, some of XP’s “global city” standards maintain strong sustainability policies, great infrastructure, a diversified economy, and a high quality of life. The company’s requirements to be part of the fund’s portfolio are diversity in the company’s structure and on boards of directors, equal pay and priority given to topics such as climate risk.

The fund’s assets are residential, industrial, storage, data centers and manufactured homes in cities in countries such as the United States, Japan, Hong Kong, Australia and the United Kingdom. In Brazil, Schroder Global Cities will direct the international Schroder ISF Global Cities fund, which is based on the FTSE EPRA Nareit Developed TR USD index. This fund, in turn, was established in October 2014 and has a cumulative return of 152%, with a return of over 13% per annum.

The product is intended for qualified investors who intend to generate stable returns over the long term. “The fund is a strategic alternative for investors looking to diversify, as it brings together companies from a highly resilient sector in the world’s most important cities,” says Rodrigo Araújo, international fund specialist at XP.

For him, some of the advantages of the fund are low correlation with other investment classes, which helps the investor create a balanced portfolio of assets; and open fund liquidity, with lower costs compared to direct investment in real estate. The minimum initial investment is R$500, and the management fee is 1% annually.

source: the information