ODDO BHF Immobilier Explained: A Comprehensive Guide to Eurozone Real Estate Investing

Introduction

Eurozone real estate has piqued the interest of investors seeking both income and diversification. ODDO BHF Immobilier is a thematic fund designed to capture the growth and defensive characteristics of property companies across the European Monetary Union. In this guide, we break down how the fund works, its key features, management approach, ESG integration, recent performance drivers and what risks to watch—all in clear, digestible sections.

What Is ODDO BHF Immobilier?

Fund Overview

ODDO BHF Immobilier is a Luxembourg-domiciled fund launched in 1989 that invests primarily in listed property companies in the Eurozone. Its goal is to outperform the MSCI EMU IMI Core Real Estate Capped 10/40 Net Return benchmark over a minimum horizon of five years, reinvesting dividends to boost long-term growth.

Fund Managers and History

The strategy is helmed by portfolio managers Véronique Gomez and Pierre Toussain, backed by ODDO BHF Asset Management’s analytical team. Since its first net asset value in June 2014 (for the current share class), the fund has combined deep sector expertise with conviction-driven stock selection.

Key Features at a Glance

• Recommended investment horizon: 5 years
• Inception date: September 14, 1989
• Benchmark: MSCI EMU IMI Core Real Estate Capped 10/40 NR (dividends reinvested)
• Investment universe: Eurozone property companies (retail, offices, residential, logistics, healthcare)
• Team size: Dedicated real estate analysts and ESG specialists
• Distribution: Authorized across several EU countries and Switzerland

Investment Strategy and Benchmark

ODDO BHF Immobilier adopts a bottom-up, conviction-based approach. This means:

1. Company Analysis: Rigorous financial and operational review of each real estate issuer.
2. Segment Focus: Targeting the most attractive niches—such as logistics hubs, defensive residential portfolios or high-quality retail centers.
3. Benchmark Awareness: Managing active weights relative to the MSCI EMU IMI Core Real Estate index, while capping concentration (10/40 rule).

By focusing on individual companies’ fundamentals and growth potential rather than macro forecasts alone, the fund aims to capture idiosyncratic alpha (stock-specific outperformance).

Portfolio Selection: A Bottom-Up Conviction Approach

Key steps in the selection process:

1. Screening: Identifying firms with strong balance sheets, transparent reporting and stable dividends.
2. Deep Dive: Conducting on-site visits, management interviews and proprietary financial modeling.
3. ESG Overlay: Applying ODDO BHF’s internal ESG ratings (1 to 5 scale) to favor best-in-universe and improving issuers.
4. Portfolio Construction: Balancing overweight convictions (highest conviction names) and underweights (lower conviction or crowded positions) to manage risk.

This granular, research-intensive process drives high-conviction positions in companies the team believes are undervalued or well-positioned for sustainable growth.

Integrating ESG for Sustainable Returns

Sustainability is embedded in the investment process through:

• Best in Universe: Preferring companies with top ESG scores among peers.
• Best Effort: Rewarding issuers with meaningful ESG improvements.
• Quantitative Metrics: Monitoring carbon intensity (Scopes 1+2), social policies and governance structures without data reprocessing.

By systematically disclosing data coverage and comparing against the benchmark, the fund aims to align financial returns with long-term environmental and social goals.

Recent Performance Highlights and Monthly Commentary

In April 2025, markets reacted sharply to global political events:

• Trade Tariffs: Initial U.S. tariff threats rattled bond and currency markets, later softened by negotiations.
• Interest Rate Moves: The ECB cut rates by 25 bps, while U.S. markets priced in potential Fed cuts amid slowdown fears.
• Sector Impact: Lower long-term yields and strong corporate earnings spurred a rally in listed real estate, particularly in residential and healthcare sub-sectors.

ODDO BHF Immobilier’s defensive underweights in German residential and healthcare names slightly detracted, while an overweight stance in logistics—which tends to be more cyclical—also weighed on relative returns. Despite this, top holdings such as Unite Group (+9.6% YTD) demonstrated the potential of specialized niches like student accommodation.

Real-World Examples: Spotlight on Notable Holdings

1. Unite Group: A U.K. student housing leader delivering double-digit rental growth through long-lease portfolios.
2. LondonMetric Property: Positioned as a defensive logistics and urban delivery play, with leases averaging 18+ years and diversified assets from leisure to healthcare.
3. Unibail-Rodamco-Westfield: A European retail and office giant whose recent U.S. exposure correction offered attractive re-entry levels.

These names illustrate how focused themes—defensive residential, logistics and prime retail—shape the fund’s high-conviction stance.

Risks to Consider

Investors should weigh the following risks before allocating to a sector-focused real estate strategy:

• Equity Risk: Share prices can be volatile, especially in listed property securities.
• Interest Rate Risk: Rising yields can pressure real estate valuations.
• Credit Risk: Leverage within property companies may amplify losses in downturns.
• Discretionary Management Risk: Stock selection may underperform benchmarks.
• Currency Risk: Euro-denominated assets may be impacted by FX volatility.

For a deeper dive on market vulnerabilities, see our analysis on real estate risks and financial stability in the European banking system.

How to Evaluate and Invest

1. Define Your Horizon: Real estate themes often require multi-year commitments—ODDO BHF recommends at least five.
2. Compare Fees: Factor in management and performance fees versus potential yield benefits.
3. Review ESG Preferences: Confirm the fund’s sustainability approach aligns with your values.
4. Monitor Liquidity: Listed real estate offers daily liquidity but can gap wider during stress periods.

Prospective investors should consult their financial advisor and the fund’s Key Information Document (KID) for detailed risk and cost disclosures.

Conclusion

ODDO BHF Immobilier provides an active, research-driven path to Eurozone real estate exposure, blending bottom-up stock selection with robust ESG integration. While sector and interest rate cycles introduce volatility, the fund’s conviction in defensive residential, logistics and prime retail names has the potential to deliver differentiated returns over a five-year horizon. By understanding its strategy, risks and sustainable focus, investors can decide if this thematic fund fits their long-term portfolio goals.