SICAV
Global Real Estate Securities Fund
Equity investment alert to the changing supply and demand dynamics of the global property market.
3YR Return Annualised
(View Total Returns)
Total Assets
(USD)
1YR Return
(View Total Returns)
Manager Tenure
Information Ratio
(5 Years)
Tracking Error
(5 Years)
Inception Date 27-Oct-2008
Performance figures calculated in USD
Strategy
The coronavirus outbreak that has rapidly spread across the globe has had a negative impact on risk assets and has led to increased market volatility. The fluid nature of the pandemic makes it difficult to predict short-term market moves, and in such an environment, we endeavor to keep a longer-term perspective on markets.
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It is highly likely that many of our investments will see a diminution in cash flows over the near term related to the virus as overall demand for real estate space declines, some tenants struggle to pay rent, and in extreme cases like hotels, properties are shut for an indeterminant amount of time and no revenue is collected. As stock pickers, we are assessing and reassessing whether we believe these cash flow declines are temporary or permanent and, if temporary, when we expect cash flows to recover. In addition, analyzing balance sheet strength and flexibility remains a core component of our investment process, with our preference for companies with lower leverage, well-termed-out debt maturities, and good liquidity in the form of cash and available lines of credit given uncertainty about the length and depth of the current economic downturn.
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Based on this rigorous analysis, we feel comfortable and optimistic with regard to our portfolio of well-located real estate, run by strong management teams, and with balance sheets that can weather the storm.�We also believe the market has unfairly punished specific names, and there are many attractive opportunities to invest in real estate today.
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While near-term volatility is likely to persist as the coronavirus outbreak evolves, we are cautiously optimistic regarding the potential for a rebound in economic activity once the spread of the virus subsides.�In addition, on the positive side for the sector, we expect developers will be highly unlikely to start construction on new projects in this environment, which should help mitigate supply pressure in the future and offset some of the near-term virus-related demand weakness.�Thus, we expect operating fundamentals will find footing in the medium term. The U.S. Federal Reserve's decision to drop interest rates to near zero and ramp up its government- and mortgage-related bond buying implies that we will remain in a low interest rate environment for the foreseeable future, which should also help support property prices.�As always, we will continue to prudently use our resources and investment framework to make good decisions for our clients.
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Investment Objective
To increase the value of its shares in the long term through both growth in the value of, and income from, its investments. The fund invests mainly in a diversified portfolio of securities issued by real-estate related companies. The companies may be anywhere in the world, including emerging markets.Investment Approach
- Employ fundamental research with a bottom-up approach.
- Assess the capability, strategy, and management of the business.
- Evaluate the asset base potential.
- Understand the supply and demand dynamics by property and market.
- Analyze balance sheet strength and flexibility.
- Integrate a risk-adjusted perspective throughout our analysis.
- Establish whether we would want to own a business for the long term.
- Leverage the deep knowledge base at T. Rowe Price, including dedicated analysts in North America, Europe, and Asia.
Portfolio Construction
- Typically 40-80 securities
- Invest in highest conviction ideas
- Diversified by property type and geography, with at least 40% invested outside the U.S.
- Sector weights are the result of bottom-up security selection
- Country weightings +/- 10% of the benchmark
- Individual position sizes range from +/- 5% of the benchmark
- Continually monitor investments to ensure:
- Execution and results are tracking our expectations
- Strategy intact and investment thesis unfolding as expected
Performance (Class I)
Annualised Performance
| 1 YR | 3 YR Annualised |
5 YR Annualised |
10 YR Annualised |
Since Manager Inception Annualised |
|
|---|---|---|---|---|---|
| Fund % | -8.68% | 0.04% | 1.09% | 5.73% | 0.35% |
| Indicative Benchmark % | -14.22% | -1.30% | 1.14% | 5.62% | 0.36% |
| Excess Return % | 5.54% | 1.34% | -0.05% | 0.11% | -0.01% |
| 1 YR | 3 YR Annualised |
5 YR Annualised |
10 YR Annualised |
|
|---|---|---|---|---|
| Fund % | -11.06% | -0.88% | 0.91% | 6.19% |
| Indicative Benchmark % | -16.25% | -1.60% | 1.27% | 6.30% |
| Excess Return % | 5.19% | 0.72% | -0.36% | -0.11% |
Recent Performance
| Month to DateData as of 14-Aug-2020 | Quarter to DateData as of 14-Aug-2020 | Year to DateData as of 14-Aug-2020 | 1 MonthData as of 31-Jul-2020 | 3 MonthsData as of 31-Jul-2020 | |
|---|---|---|---|---|---|
| Fund % | 0.89% | 4.76% | -12.93% | 3.84% | 5.35% |
| Indicative Benchmark % | 1.24% | 4.05% | -18.15% | 2.78% | 5.66% |
| Excess Return % | -0.35% | 0.71% | 5.22% | 1.06% | -0.31% |
Past performance is not a reliable indicator of future performance. Source for fund performance: T. Rowe Price. Fund performance is calculated using the official NAV with dividends reinvested, if any. The value of an investment and any income from it can go down as well as up. Investors may get back less than the amount invested. It will be affected by changes in the exchange rate between the base currency of the fund and the subscription currency, if different. Sales charges (up to a maximum of 5% for the A Class), taxes and other locally applied costs have not been deducted and if applicable, they will reduce the performance figures.
Where the base currency of the fund differs from the share class currency, exchange rate movements may affect returns.
Index returns shown with reinvestment of dividends after the deduction of withholding taxes.
Effective 1 June 2019, the "net" version of the indicative benchmark replaced the "gross" version of the indicative benchmark. The "net" version of the indicative benchmark assumes the reinvestment of dividends after the deduction of withholding taxes applicable to the country where the dividend is paid; as such, the returns of the new benchmark are more representative of the returns experienced by investors in foreign issuers. Historical benchmark performance has been restated accordingly.
Holdings
Total
Holdings
65
Largest Top Contributor^
Prologis
By 2.79%Largest Top Detractor^
Sun Hung Kai Properties
By -0.62%Top Purchase
Summit Industrial Income REIT
1.87%Top Sale
Public Storage
1.57%
Industry
Total
Industries
10
Top Contributor^
Industrial
Net Contribution 0.75%Top Detractor^
Triple Net
Net Contribution -0.59%Largest Overweight
Industrial
Largest Underweight
Triple Net
Regions
Total
Regions
4
Largest Overweight
Japan
Largest Underweight
North America
Countries
Total
Countries
14
Largest Overweight
United Kingdom
Largest Underweight
Germany
Team (As of 05-Aug-2020)
Nina Jones is the portfolio manager for the Global Real Estate Equity and U.S. Real Estate Equity Strategies. She is also chairman of the Investment Advisory Committee for the U.S. Real Estate Equity Strategy. Nina is also a vice president and advisory committee member of the Financial Services and Mid-Cap Value strategies. She is a member of the investment advisory committee of the Global Growth, Global Stock and Institutional Large Cap Value strategies. Nina is vice president of T. Rowe Price Group.
Nina’s investment experience began in 2008 and she has been with T. Rowe Price since 2008, beginning in the U.S. Equity Division. Prior to this, Nina was a T. Rowe Price summer intern following payroll processor companies in the business services sector. Prior to joining the firm, she worked at KPMG LLP in the audit and risk advisory area.
Nina earned a dual B.S., magna cum laude, in accounting and finance from the University of Maryland and earned an M.B.A., with honors, in finance and economics from Columbia Business School. Nina also earned the certified public accountant designation.
- Fund manager2015
since - Years at12
T. Rowe Price - Years investment12
experience
Jai Kapadia is a regional portfolio manager at T. Rowe Price. He manages the Global Real Estate Strategy and is responsible for stock selection for the Asia-Pacific region.
Mr. Kapadia has 13 years of investment experience, eight of which have been with T. Rowe Price. He joined the firm in 2011. Before his current role, Mr. Kapadia was an analyst and associate director of research in the Equity Research Group of T. Rowe Price in Hong Kong, covering Asian conglomerates, real estate and Indian pharmaceuticals. Prior to joining the firm, he worked at Credit Suisse in New York, covering telecommunication equipment stocks, and at Sirios Capital in Boston, covering consumer stocks.
Mr. Kapadia earned a B.A. in economics from Columbia University and an M.B.A. from the Massachusetts Institute of Technology, Sloan School of Management.
- Fund manager2019
since - Years at8
T. Rowe Price - Years investment13
experience
Caleb Fritz is a portfolio specialist in the U.S. Equity Division of T. Rowe Price. He acts as a proxy for equity portfolio managers with institutional clients, consultants, and prospects. Mr. Fritz supports T. Rowe Price's large-cap value strategies. He is a vice president of T. Rowe Price Group, Inc.
Mr. Fritz has 19 years of investment experience, 12 of which have been with T. Rowe Price. Prior to his current position, he was a lead portfolio analyst providing analytical support to investment, client service, and marketing staff for the firm's large-cap value and health sciences portfolios. Prior to joining the firm in 2007, Mr. Fritz served as an associate analyst for Legg Mason Capital Management, covering the health care sector.
Mr. Fritz earned a B.A. and an M.A. from the University of South Florida, and he also has earned the Chartered Financial Analyst designation.
- Years at12
T. Rowe Price - Years investment19
experience
Fee Schedule
| Share Class | Minimum Initial Investment and Holding Amount (USD) | Minimum Subsequent Investment (USD) | Minimum Redemption Amount (USD) | Sales Charge (up to) | Investment Management Fee (up to) | Ongoing Charges |
|---|---|---|---|---|---|---|
| Class A | $1,000 | $100 | $100 | 5.00% | 160 basis points | 1.77% |
| Class I | $2,500,000 | $100,000 | $0 | 0.00% | 75 basis points | 0.85% |
| Class Q | $1,000 | $100 | $100 | 0.00% | 75 basis points | 0.92% |
Please note that the Ongoing Charges figure is inclusive of the Investment Management Fee and is charged per annum.
Nina Jones is the portfolio manager for the Global Real Estate Equity and U.S. Real Estate Equity Strategies. She is also chairman of the Investment Advisory Committee for the U.S. Real Estate Equity Strategy. Nina is also a vice president and advisory committee member of the Financial Services and Mid-Cap Value strategies. She is a member of the investment advisory committee of the Global Growth, Global Stock and Institutional Large Cap Value strategies. Nina is vice president of T. Rowe Price Group.