Key Takeaways
- • NAA Risk Managed Real Estate Fund (GURIX) delivered 4.24% returns over the past 12 months, underperforming the MSCI ACWI NR USD benchmark by 15.77 percentage points, though outperforming its peer category average by 1.49 percentage points as of March 31, 2026.
- • The fund employs a long/short equity strategy with at least 80% allocation to real estate securities, including REITs, individual equity securities, ETFs, and derivatives focused on real estate industry issuers, positioning it as a hedged alternative to traditional real estate exposure.
- • Expense ratio of 1.62% exceeds the category average of 1.30%, creating a 32-basis-point cost disadvantage that contributes to relative underperformance versus passive benchmarks, though management fees align closely with category norms at stated levels.
- • Fund exhibits above-average volatility risk relative to peer category, indicating higher price fluctuation and potential for greater drawdowns despite the stated risk management mandate embedded in its strategy design.
- • Three-year annualized return of 6.81% and ten-year return of 6.77% demonstrate modest long-term performance, with the fund ranking 28th in its category on one-year performance and 42nd on three-month returns, signaling inconsistent alpha generation.
Summary
The NAA Risk Managed Real Estate Fund (GURIX) is a long/short real estate equity fund designed to generate total returns through capital appreciation and current income. The fund maintains at least 80% of assets in real estate-focused securities, including REITs, exchange-traded funds, and derivative instruments that provide exposure to the real estate industry. This structure allows investors to gain leveraged or hedged real estate exposure through equity-like securities while employing both long and short positions to manage downside risk.
Performance metrics as of March 31, 2026 reveal mixed results. The fund returned 4.24% over the trailing 12-month period, substantially underperforming the broader MSCI ACWI NR USD benchmark, which gained 20.01% over the same timeframe—a shortfall of 15.77 percentage points. However, GURIX marginally outperformed its Morningstar peer category by 1.49 percentage points on one-year returns and ranked 28th among category competitors on this metric. Over longer horizons, the fund has delivered 6.81% annualized returns over three years and 6.77% over a decade, indicating stable but modest long-term performance generation.
Recent performance has been volatile. The fund declined 6.12% over the most recent month while the broader MSCI ACWI NR USD fell 7.18%, a relative outperformance of 106 basis points. Over six months, GURIX gained 0.85% versus a flat benchmark performance, and over three months it returned 3.34%, outpacing the category average of 2.31%, suggesting some tactical positioning benefit in near-term periods.
The fund's cost structure presents a material headwind to net returns. GURIX charges an expense ratio of 1.62%, which exceeds the category average of 1.30%—a 32-basis-point drag that directly impacts relative performance. Morningstar classifies the fund's risk profile as above average relative to its peer category, reflecting elevated volatility despite the risk management framework inherent in the long/short strategy. This elevated volatility creates potential for larger drawdowns alongside potential upside capture, a risk-return trade-off institutional investors should weigh against passive real estate alternatives.
Performance metrics as of March 31, 2026 reveal mixed results. The fund returned 4.24% over the trailing 12-month period, substantially underperforming the broader MSCI ACWI NR USD benchmark, which gained 20.01% over the same timeframe—a shortfall of 15.77 percentage points. However, GURIX marginally outperformed its Morningstar peer category by 1.49 percentage points on one-year returns and ranked 28th among category competitors on this metric. Over longer horizons, the fund has delivered 6.81% annualized returns over three years and 6.77% over a decade, indicating stable but modest long-term performance generation.
Recent performance has been volatile. The fund declined 6.12% over the most recent month while the broader MSCI ACWI NR USD fell 7.18%, a relative outperformance of 106 basis points. Over six months, GURIX gained 0.85% versus a flat benchmark performance, and over three months it returned 3.34%, outpacing the category average of 2.31%, suggesting some tactical positioning benefit in near-term periods.
The fund's cost structure presents a material headwind to net returns. GURIX charges an expense ratio of 1.62%, which exceeds the category average of 1.30%—a 32-basis-point drag that directly impacts relative performance. Morningstar classifies the fund's risk profile as above average relative to its peer category, reflecting elevated volatility despite the risk management framework inherent in the long/short strategy. This elevated volatility creates potential for larger drawdowns alongside potential upside capture, a risk-return trade-off institutional investors should weigh against passive real estate alternatives.
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