First Investors has introduced a new mutual fund that’s focused on companies in the U.S. real estate industry.
In recent years, says First Investors, commercial real estate investments have banked solid returns as a result of the U.S. recovery. However, direct investments in commercial are difficult to manage for individual retail investors.
So, people have turned to mutual funds invested in REITs to gain exposure to the sector. The new fund, adds First Investors, will invest in up to 100 publicly traded U.S. REITs across a wide range of property types, including hotels, office buildings, industrial properties and apartment complexes.
Vincent Kwong, who will manage the new fund, will focus on REITs that have: consistent return on invested capital; recurring operating income; and strong capital structure.
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