The Real Estate Securities investment strategy seeks to generate long-term total returns that outpace those of its benchmark, the FTSE NAREIT All Equity REITs Index.
The portfolio management team typically invests in the securities of companies that are principally engaged in or related to the real estate industry, including equity real estate investment trusts (REITs), mortgage REITs, real estate brokers and developers, home builders and other companies with significant real estate assets. The team believes that investing in undervalued securities and property types can generate returns that outperform its index over time.
The portfolio management team often takes a contrarian approach, seeking to invest in securities that are deemed to be temporarily out-of-favor by the market. A top-down asset allocation framework helps to identify those property types and regional areas that offer the best relative value. Individual security selection is determined through a detailed bottom-up company analysis. The strategy usually holds securities with lower price-to-net asset value and price-to-cash flow multiples versus the benchmark in seeking to achieve a portfolio with a higher dividend yield.
Real Estate Securities portfolios are subject to certain risks such as market and investment style risk. In addition, due to it’s concentration in the real estate sector, portfolios are subject to greater risk and volatility than diversified portfolios, and its value may be substantially influenced by economic events affecting the real estate industry.
This material is provided for informational purposes only and should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate.