Royal London BlackRock Developed Real Estate Index Fund

The RL BlackRock Developed Real Estate Index Fund invests in global listed real estate markets through a passively managed, index-tracking approach. Its portfolio is concentrated in real estate companies and REITs, with holdings such as Welltower, Prologis, Equinix and Simon Property Group. The fund aims to reflect the return of the FTSE EPRA/Nareit Developed Index, so its performance is designed to follow the developed real estate market rather than try to beat it.

The RL BlackRock Developed Real Estate Index Fund is intended for investors with a medium to long-term horizon, specifically at least 7 years. The factsheet says it is expected to be more volatile because of its real estate exposure. In plain language, volatility means the fund’s value can rise and fall more sharply than more diversified investments.

The RL BlackRock Developed Real Estate Index Fund is globally diversified across developed real estate markets. Its geographic allocation includes the United States, Japan, Australia, Hong Kong, the United Kingdom, Singapore, Canada, Germany and Sweden, among others. This means investors are not relying on just one national property market, although returns can still vary by region.

The RL BlackRock Developed Real Estate Index Fund faces market fluctuations, capital returns, currency risk, counterparty risk and liquidity risk. Currency risk means changes in exchange rates can affect returns when the fund holds assets in different currencies. Liquidity risk means some holdings may be harder to buy or sell quickly at a fair price, which can affect the fund when markets are stressed.