ČS nemovitostní fond – tangible investment

From early times the real estate belongs among traditional ways to store value – and that is why until today the real estate is considered one of the most sought-after assets. Although the price of real estate can be temporarily influenced by economic or political factors, its value remains stable over a long period.

Real estate attracts investors for a variety of reasons

  1. Stable value over the long term
  2. Protection against inflation 
  3. Low price fluctuations 
  4. Investment in the tangible assets

Unit certificate as part of the real estate

Investors have never been able to invest in real estate in such a simple way as they can now. The ČS NEMOVITOSTNÍ FOND offers the opportunity to invest in large commercial real estate worth billions of Czech crowns and thus benefit from the income earned by these assets. You can invest in the ČS nemovitostní fund even with relatively low amounts, in the order of several hundreds of Czech crowns. Through purchase of unit certificates of ČS nemovitostní fond you will become an owner of a high-quality real estate assets which are otherwise hardly available for most investors.

Fund characteristics

ČS nemovitostní fond invests almost 80% of its financial means into standing and well leased real estate. These are prime commercial properties, predominantly office buildings. The fund holds at least 20% of its financial means in highly liquid financial assets to cover possible redemptions. The main sources influencing the fund performance comprise the rental income and the potential fluctuation in the value of its property portfolio. These sources, together with the active management of real estate, can generate very interesting income.

 

For whom is the fund intended?

ČS nemovitostní fond is intended for conservative as well as dynamic clients who want to utilise the benefits that ensue from investments into high-quality commercial real estate, without worries related to managing or buying and selling the real estate. The minimum recommended investment horizon is 5 years.  

Why invest in ČS nemovitostní fond?

  • Diversification of investment 
    Performance of real estate assets develops in a different way than the performance of financial assets. Adding real estate to investment portfolio you thus generally decrease the volatility of the overall portfolio value. 
  • Protection against inflation 
    Most lease contracts contain so-called inflation index. In case of inflation increase, every year the collected rent will be adequately topped up by the inflation growth that occurred in the previous year.
  • Investment that has a higher liquidity than typical real estate assets 
    In contrast with the direct purchase or sale of real estate; the stake in the real estate fund can be also easily and quickly purchased or sold.
  • Suitable instrument to provide for a prosperous retirement 
    Due to its conservative focus, longer recommended holding period and regular investments, the fund is suitable for securing the retirement period.
  • Low deposit amounts 
    Investments to the fund are available from only 300 Czech koruna.
  • The investment yield is not subject to the income tax 
    After 3 years the return from investment into the ČS nemovitostní fond units is exempted from the income tax *.

* Due to the ongoing legislation changes, especially in the tax area, we advise you to always consult these matters with a tax advisor.

Basic details of the fund

Management company: REICO investiční společnost České spořitelny, a.s
Inception date: 9.2.2007
Fund currency: CZK
Fund domicile: Czech Republic
Frequency of valuation and trading: daily
Minimum amount of the first and every subsequent investment: 300 CZK
Number of the fund nominee account: 35-2001349369/0800
ISIN number: CZ0008472545
Custodian bank: Česká spořitelna, a.s.
Auditor: KPMG ČR audit, s.r.o.
Status: open-ended real estate investment fund (AIF).

Fund fees

Current upfront fee: 1,50 %
Exit fee: 0 %
Performance fee:  0 %
Management fee*: 1.75 %

 * These costs are not charged directly to the investor, they are paid from the fund assets and hence they decrease the performance of the fund.

For more information, please contact the branches of Česká spořitelna, our external partners and the information line 800 INVEST (800 468 378).