The PREDEX Structure
PREDEX is designed to provide an institutional-quality real estate investment to investors.
PREDEX provides access to private core real estate through the convenience of a mutual fund. Please browse through the topics below to find out more about investing in PREDEX.
PREDEX seeks stable income and long-term capital appreciation by investing in a portfolio of flagship U.S. core property funds managed by leading institutional real estate sponsors. Our underlying funds own interests in more than 1,400 properties valued at more than $100 billion.
Why can’t PREDEX be a pure index fund?
PREDEX cannot be a pure NFI-ODCE Index fund because to do so, it would have to own all of the member funds weighted by their net asset values—an impossible task due to the uneven timing of capital calls and quarterly liquidity. PREDEX seeks to be as close to a “beta” fund as possible and represent the characteristics of the NFI-ODCE Index.
Interval Funds and Redemptions
As an interval fund, PREDEX offers quarterly share repurchases for no less than 5% and no more than 25% of the Fund’s total shares outstanding. Share repurchases are offered at net asset value (NAV).
All of an investor’s tendered shares will be repurchased if the combined total shares tendered by all investors is less than the repurchase offer amount. If total shareholder requests exceed the repurchase offer amount, PREDEX will repurchase shares on a pro rata basis. There is no guarantee that an investor will be able to sell all shares in a repurchase offer. Quarterly share redemption is available throughout the life of the fund.
Daily NAV Pricing
Like open-end mutual funds, PREDEX provides transparency through daily pricing at net asset value (NAV). This is different from publicly traded real estate securities, which are priced based on daily trading activity. It is believed that appraisal NAV pricing may contribute to less volatility of PREDEX shares.
PREDEX offers a low-cost, passive (‘beta’) investment strategy, which means that management fees may be lower than those of other investment options. The annual asset management fee is 0.55%. The gross total expense ratio is 3.63% as stated in the fee table of the September 1, 2017 prospectus. This represents the annualized ratio of expenses to average net assets before reimbursement for the initial fiscal year ended April 30, 2017. The Adviser and the Fund have entered into an Expense Limitation Agreement under which the Adviser has agreed contractually to waive its fees and to pay or absorb the ordinary expenses of the Fund until at least August 31, 2018 to the extent that they exceed 1.20% per annum of the Fund’s average daily net assets.
Minimum Initial Investment
While the minimum investment in PREDEX is $1,000,000, with pre-approval the minimum can be waived by the Advisor. Exceptions are available for registered investment advisors who aggregate accounts for the benefit of their clients.
Underlying Fund Sponsors
The target funds in which PREDEX invests are the flagship U.S. core property funds managed by leading institutional real estate sponsors including:
|AEW Capital Management|
American Realty Advisors
Barings Real Estate
Blackrock Real Estate
Deutsche Bank / RREEF
|Guggenheim Real Estate|
Harrison Street Real Estate
Heitman Capital Management
Invesco Real Estate
J.P. Morgan Asset Management
MetLife Investment Management
|Principal Real Estate Investors
Prudential Real Estate Investors
Sentinel Fund Advisors
UBS Realty Investors
USAA Real Estate Company
PREDEX Service Providers
Custodian: BNY Mellon
Auditor: RSM US LLP
Administrator / Transfer Agent: Gemini Fund Services
Distributor: Northern Lights Distributors