Nomura Real Estate Securities Fund Surpasses Benchmark in Q4 2025

The Nomura Real Estate Securities Fund achieved a positive return in the fourth quarter of 2025, outperforming its benchmark, the FTSE Nareit Equity REITs Index. The fund’s performance reflects a resilient investor sentiment, supported by ongoing expectations of easing monetary policy despite the challenges posed by rising interest rates.

In the fourth quarter, 10-year US Treasury yields rose slightly to 4.17%, with longer-term yields approaching 4.75%. These increases come against a backdrop of concerns regarding fiscal responsibility and persistent inflation, which have prompted the US Federal Reserve to adopt a more cautious approach in its monetary policy.

Market Dynamics and Investor Sentiment

The rise in Treasury yields signals a complex market environment where higher interest rates continue to pose challenges for investors. Nevertheless, the prospect of easing monetary policy has contributed positively to market sentiment. Investors appear to be weighing the potential for future rate cuts against the current landscape of elevated inflation and fiscal uncertainties.

Nomura’s performance in Q4 2025 illustrates the fund’s ability to navigate these challenges effectively. By outpacing the FTSE Nareit Equity REITs Index, the fund has demonstrated its resilience and adaptability in a competitive market. This achievement is particularly noteworthy given the broader economic context, which includes fluctuating interest rates and ongoing discussions about fiscal policy.

The ongoing dialogue surrounding monetary policy remains critical. As the US Federal Reserve contemplates its next steps, market participants will closely monitor any shifts that might influence investment strategies. The expectation of a more accommodative stance may further bolster investor confidence in sectors like real estate, which have shown potential for growth even amid rising costs.

In conclusion, the Nomura Real Estate Securities Fund‘s performance in the fourth quarter of 2025 not only highlights its success in outperforming its benchmark but also reflects broader market trends influenced by monetary policy and economic conditions. Investors will likely continue to assess the evolving landscape as they seek opportunities for growth in the coming quarters.