IDR Index Fund Opens $337 Billion ODCE Market to Wealth Managers | New

A fund that tracks the NCREIF Open-end Diversified Core Equity Index (ODCE) offers wealth managers access to a $337 billion (€329 billion) market that has been mostly the preserve of institutional investors.

The IDR Core Property Index Fund, which has raised $4.2 billion from institutional investors according to sources – including, recently, the California State Teachers’ Retirement System – has been opened up to wealth management platforms.

The move will diversify the index fund’s capital base, which currently includes large institutions with large investments in the fund — including Texas’ Teacher Retirement System (TRS), which committed up to $990 million in 2018.

Jared Morris, Chief Investment Officer for Texas TRS Real Assets, said, “What IDR is doing is a major innovation for private equity real estate and will bring the same portfolio benefits to large institutions and qualified retail investors. “

The fund managed by IDR Investment Management invests in all the funds that make up the NCREIF ODCE index, which is capitalized by more than 4,000 global investors with approximately 3,300 properties in 35 US markets.

Gary Zdolshek, CEO of IDR, said, “We are delighted to welcome accredited investors to join our institutional investor base in what we believe is the third step in a compelling investment strategy alongside equities. and bonds.

Garrett Zdolshek, portfolio manager for IDR, said: “Diversified private real estate investing offers many potential benefits and has historically provided inflation hedging, stable income and low correlation to stocks and bonds.

“Indexing also reduces the risk associated with sole ownership and manager selection, while offering potentially attractive returns over a full market cycle.”

IDR now has separate investment vehicles for institutional and retail investors, with minimum requirements of $10 million and $25,000, respectively.

The fund has raised more than $650 million from institutional investors in the first half of 2022, sources say.

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Dolores W. Simon