Nomura Real Estate Securities Fund Q4 2025 Commentary

March 15, 2026 - 20:14

The Nomura Real Estate Securities Fund concluded the fourth quarter of 2025 with a positive return, successfully surpassing the performance of its benchmark, the FTSE Nareit Equity REITs Index. This period of outperformance highlights the fund's strategic positioning and active management within the real estate investment trust sector.

Market conditions during the quarter were shaped by a stabilizing interest rate environment, which provided a more favorable backdrop for REIT valuations. The fund's managers capitalized on selective opportunities across various property subsectors. Notably, strategic overweight positions in specific industrial and residential segments contributed significantly to the relative gains. These areas demonstrated resilient fundamentals, including strong occupancy rates and sustainable rental growth.

Conversely, the team maintained a cautious stance on sectors more sensitive to economic cyclicality and consumer discretionary spending, mitigating potential drags on performance. The overall result reflects a disciplined investment approach focused on identifying companies with robust balance sheets and superior operational metrics. This quarter's achievement underscores the fund's objective of delivering consistent, benchmark-beating returns for its investors through in-depth market analysis and strategic stock selection.