Fidelity Launches Global RE Fund

Fidelity Investments headquarters in Boston; the firm has more than $20 billion in real estate assets under management.

BOSTON—Asset management firm Fidelity Investments said Wednesday it had launched the Fidelity Advisor Global Real Estate Fund (FWRAX). Available exclusively to financial advisors and other intermediaries, the new fund is designed to invest in US and international real estate securities. “The global listed real estate securities market is an area where we’ve seen strong client demand and increased investor focus,” says portfolio manager Steve Buller. “Roughly half the opportunity set for real estate is located outside the US and, given that real estate companies are inherently driven by local supply and demand drivers, a global approach can make sense in identifying the best opportunities around the world. “In addition to offering potential diversification benefits, many areas of the global real estate securities market are still in their infancy and may offer compelling secular or long-term, growth opportunities,” he adds. The timing of the FWRAX launch coincides with the imminent carve-out of real estate from the financial sector within the  Global Industry Classification Standard taxonomy. A spokeswoman for Fidelity tells GlobeSt.com the GICS change was one of the many factors Fidelity considered in creating the new fund. With $2 trillion in assets under management globally, Fidelity says it’s well positioned to continue its focus on the real estate sector with a global team of more than 15 real estate research and investment specialists. The Boston-based asset manager has a long history of investing in listed real estate markets with more than $20 billion in AUM across domestic, international and global mutual funds and institutional accounts. The company’s other real estate mutual funds and ETFs include Fidelity Advisor Real Estate Fund Class A, Fidelity Advisor Real Estate Income Fund Class A, Fidelity Advisor International Real Estate Fund Class A, Fidelity MSCI Real Estate Index ETF, Fidelity Real Estate Index Fund, Fidelity Real Estate Investment Portfolio and Fidelity Select Construction and Housing Portfolio. In other news, Fidelity has issued a new thought leadership paper, “Overlooked Opportunities in Global Real Estate.” The paper offers insight into global real estate asset class and examines potential benefits for investors. With roughly 50% of real estate opportunities outside the U.S., the paper outlines key market differences between US and international real estate, such as management structures, REIT adoption and listed real estate levels.