DD Real Assets Fund: global investing in alternative equities
Through the DD Real Assets Fund, we invest in alternative asset classes, including real estate and infrastructure. The fund invests in at least twenty companies that meet our quality criteria.
DD Real Assets Fund
The DD Real Assets Fund invests globally in high-quality companies in alternative sectors such as real estate and infrastructure.
The DD Real Assets Fund has a long-term average net return target of 7% per year and aims to pay a consistent, modestly growing dividend. The DD Real Assets Fund is tradable daily.
Portfolio examples: DD Real Assets Fund
Examples of several companies in the DD Real Assets Fund’s portfolio.
The largest player in the German housing market and, for the past few years, also active in Austria and Sweden. Vonovia has a portfolio of over 550,000 affordable homes with an average rent of €450. By renovating existing homes, the company achieves rent growth while making the homes energy-efficient and adapting them to modern standards. The value of the properties is below their replacement cost and we therefore expect a stable increase in value in the coming years.
Prologis was founded in 1983 and has grown to become the world’s largest investor in logistics real estate. Its largest tenants are Amazon, DHL and FedEx. Prologis holds a market share of about 5% in all major U.S. cities. Prologis is also growing rapidly in Europe, Asia and South America. Prologis is benefiting from the growth in e-commerce and changes in the supply chain. Prologis’s growth comes primarily from its own development pipeline. Prologis expects to develop $2 to $3 billion worth of new distribution centers annually. Financing this growth is not an issue, given the company’s low debt ratio and its A ratings from S&P and Moody’s.
With a portfolio of nearly 300 data centers in 12 countries, Digital Realty, along with Equinix (also in the portfolio), is one of the world’s largest players. Digital Realty offers high-quality, sustainable data centers suitable for multiple tenants. Major clients include IBM, Facebook, Oracle and LinkedIn. The growth outlook for data centers is strong due to the growth of cloud services, artificial intelligence, the Internet of Things, autonomous driving and augmented reality.
It has grown to become the world’s largest investor in telecommunications towers. American Tower’s business model is relatively simple. The company erects telecommunications towers, which are then leased to major telecommunications companies. The telecommunications companies are responsible for installing their own equipment. As a result, AMT’s maintenance costs are low. Another advantage is that it’s easy to accommodate multiple tenants on a single tower, which immediately boosts profitability. Not only that, but by accommodating multiple tenants on a single tower, fewer towers need to be built. The company benefits from the growth of mobile communications and the rollout of 5G, and it operates in many developing countries where internet access is considered a basic necessity. Through rent indexations, acquisitions and the installation of new towers, we expect revenue to grow significantly each year over the next 10 years.
With a portfolio of more than $50 billion, it is one of the world’s largest investors in renewable energy, primarily hydroelectric power plants and wind and solar farms. Brookfield invests primarily in North and South America but is also active in a number of European and Asian countries. The company is managed by Brookfield Asset Management, which is also its largest shareholder. The company has a long and excellent track record and expects a significant increase in earnings per share in the coming years. Brookfield has a BBB+ rating from S&P.
Greencoat Renewables invests primarily in onshore wind farms in Ireland, but is now expanding significantly into other European countries. Greencoat benefits from long-term contracts with a guaranteed minimum return and annual indexation for approximately 70% of its portfolio. New projects are (largely) subsidy-free thanks to the use of more efficient wind turbines and have very low maintenance costs. Greencoat has a strong balance sheet and has secured financing for the long term.
Return on the DD Real Assets Fund
|
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
2022 |
2023 |
2024 |
2025 |
2026 |
per year |
TOTAL |
|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
DD Real Assets Fund B |
11,8% |
3,4% |
21,2% |
18,1% |
5,1% |
8,7% |
-7,8% |
18,6% |
-15,9% |
17,3% |
-16,1% |
1,5% |
-4,3% |
5,0% |
4,4% |
4,1% |
82,0% |
All returns are net of fees. Geometric average from January 2012 to September 2026. The value of your investment may fluctuate. Past performance is no guarantee of future results. As a result, you may lose all or part of your investment. For more information about the risks, please refer to the Key Information Document and the fund’s prospectus. Click here for the documentation for the DD Real Assets Fund.