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GIPS® Information

T. Rowe Price ("TRP") claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. T. Rowe Price has been independently verified for the twenty four-year period ended June 30, 2020, by KPMG LLP. The verification report is available upon request. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report.

TRP is a U.S. investment management firm with various investment advisers registered with the U.S. Securities and Exchange Commission, the U.K. Financial Conduct Authority, and other regulatory bodies in various countries and holds itself out as such to potential clients for GIPS purposes. TRP further defines itself under GIPS as a discretionary investment manager providing services primarily to institutional clients with regard to various mandates, which include U.S, international, and global strategies but excluding the services of the Private Asset Management group.

A complete list and description of all of the Firm's composites and/or a presentation that adheres to the GIPS® standards are available upon request. Additional information regarding the firm's policies and procedures for calculating and reporting performance results is available upon request

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Global Real Estate Securities Fund

Equity investment alert to the changing supply and demand dynamics of the global property market.

ISIN LU0382932225 WKN A0RB2J

3YR Return Annualised
(View Total Returns)

Total Assets


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

30-Sep-2021 - Jai Kapadia, Portfolio Manager ,
We remain optimistic about the potential in real estate stocks. We expect that the rollout of coronavirus vaccines will result in increasing consumer activity and an improving employment picture. Although valuations have generally recovered, we remain constructive on the earnings potential for several property types driven by recovering rents and falling supply.
Jai Kapadia
Jai Kapadia, Portfolio Manager

Jai Kapadia is a sector portfolio manager in the International Equity Division. He manages the Global Real Estate Equity Strategy.



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.
  • Environmental, social and governance ("ESG") factors with particular focus on those considered most likely to have a material impact on the performance of the holdings or potential holdings in the funds’ portfolio are assessed. These ESG factors, which are incorporated into the investment process alongside financials, valuation, macro-economics and other factors, are components of the investment decision. Consequently, ESG factors are not the sole driver of an investment decision but are instead one of several important inputs considered during investment analysis.

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
5 YR
10 YR
Since Manager Inception
Fund % 33.28% 9.42% 5.52% 8.38% 11.18%
Indicative Benchmark % 29.64% 6.18% 4.53% 8.34% 8.19%
Excess Return % 3.64% 3.24% 0.99% 0.04% 2.99%

Inception Date 27-Oct-2008

Manager Inception Date 31-Mar-2021

Indicative Benchmark: FTSE EPRA Nareit Developed Index Net TRI

Data as of 30-Sep-2021

Performance figures calculated in USD

  1 YR 3 YR
5 YR
10 YR
Fund % 33.28% 9.42% 5.52% 8.38%
Indicative Benchmark % 29.64% 6.18% 4.53% 8.34%
Excess Return % 3.64% 3.24% 0.99% 0.04%

Inception Date 27-Oct-2008

Indicative Benchmark: FTSE EPRA Nareit Developed Index Net TRI

Data as of 30-Sep-2021

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 15-Oct-2021 Quarter to DateData as of 15-Oct-2021 Year to DateData as of 15-Oct-2021 1 MonthData as of 30-Sep-2021 3 MonthsData as of 30-Sep-2021
Fund % 3.75% 3.75% 24.14% -2.80% 1.56%
Indicative Benchmark % 4.51% 4.51% 19.62% -5.80% -0.90%
Excess Return % -0.76% -0.76% 4.52% 3.00% 2.46%

Inception Date 27-Oct-2008

Indicative Benchmark: FTSE EPRA Nareit Developed Index Net TRI

Indicative Benchmark: FTSE EPRA Nareit Developed Index Net TRI

Performance figures calculated in USD

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.

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.

30-Sep-2021 - Jai Kapadia, Portfolio Manager ,
Global real estate stocks produced overall negative results in September as the rapid rise in U.S. Treasury yields at the end of the period weighed on returns. At the sector level, lodging/leisure, regional malls, and shopping centres finished with negative results but held up relatively well during the downturn. Within the portfolio, stock selection in the U.S. was the primary contributor to relative results. Our positions in the lodging segment outperformed as hotels benefitted from increasing leisure-driven travel demand. In addition, our position in an apartment real estate investment trust (REIT) focused on Sunbelt markets outperformed its peers. Stock selection in Hong Kong also added value due to our position in an office landlord. Conversely, our overweight allocation to Finland, the weakest performer in the benchmark, hampered relative results. Stock selection in Singapore also weighed on returns as our positions in a mall owner and an industrial REIT underperformed.


Largest Holding Prologis 5.24% Was (30-Jun-2021) 5.06%
Other View Full Holdings Quarterly data as of  30-Sep-2021
Top 10 Holdings 32.10% View Top 10 Holdings Monthly data as of  30-Sep-2021

Largest Top Contributor^

% of fund 5.14%

Largest Top Detractor^

Acadia Realty Trust
% of fund 2.04%

^Absolute, percentages based on the difference between the total net assets of the two largest holdings of the fund.

Quarterly Data as of 30-Sep-2021

Top Purchase

Simon Property Group
Was (30-Jun-2021) 0.68%

Top Sale

Was (30-Jun-2021) 1.77%

Quarterly Data as of 30-Sep-2021

30-Jun-2021 - Jai Kapadia, Portfolio Manager ,

During the quarter, we remained focused on companies with quality properties, strong management teams, and solid balance sheets. We added to stocks that offer sustainable rental and dividend growth and are well positioned to outperform as the economy recovers from the pandemic. We believe our overweight positions in the apartment and lodging sectors will benefit as economies reopen.

United States

The largest absolute weight in the portfolio and benchmark is in the United States, the largest and most mature market within commercial real estate.

  • Prologis, an industrial property landlord with significant global scale, remained the portfolio's largest holding. We believe that the company is well positioned to benefit from supply-chain reconfiguration and growth in e-commerce and its focus on faster-growing markets could drive above-average rental growth.
  • We also have significant positions in apartment owners such as Camden Property Trust, AvalonBay Communities, and Equity Residential. As occupancy rates return to pre-pandemic levels, these companies should be well positioned to benefit from rising rents and falling incentives.
  • We initiated a position in Howard Hughes, which sells land for long-term community development projects in Las Vegas, Houston, Hawaii, and the Maryland suburbs. We like that Howard Hughes has exposure to the strong U.S. housing market, and the company also has the potential to monetize assets. The stock remains undervalued compared with its sum-of-the-parts valuation.


We have a significant weighting in Japan.

  • Our largest Japanese holding is Mitsui Fudosan, which develops and owns numerous office, housing, and retail properties, primarily in Tokyo. Management has remained focused on improving capital management, and the developer should benefit from a reopening of the economy.
  • We initiated a position in Kyoritsu Maintenance, which engages in the dormitory business management service and caters to limited hotels. The company trades on an attractive valuation, in our view, and has the potential to benefit from vaccination progress and a gradual increase in travel.
  • We eliminated the portfolio's position in Nippon Accommodation Fund, a large residential J-REIT focused on the Tokyo area. In our view, the company offered less upside potential in a post-pandemic recovery.

United Kingdom���

We also maintain a significant weighting to the United Kingdom. We believe London remains an attractive global city for companies, employees, and real estate investors alike.

  • Our largest exposure in the UK is in Derwent London, which redevelops office assets in the West End and Tech Belt markets. While uncertainty remains about the longer-term impact of work from home policies on office demand, we have seen a brisk leasing pace in the London office sector recently, including several high-profile headquarters deals. We believe that Derwent London will perform well as Grade A rents recover and that the company will continue to add value through development.
  • We eliminated the portfolio's position in Shaftesbury, which has a focus on retail and restaurant real estate in the West End. We believe it could take longer for street retail vacancies to be filled and rents to stabilize in the West End than the market is currently anticipating.

Hong Kong

We maintain a substantial weighting in Hong Kong, where we focus on companies with high-quality assets in attractive locations. The lack of available land for commercial and residential construction should benefit operating fundamentals over the long run.

  • We eliminated our position in Hang Lung Properties, which is focused on luxury retail real estate on the Chinese mainland.
  • We started a position in Wharf Real Estate Investment, a luxury shopping mall landlord in Hong Kong. We believe the company will benefit from a gradual return of Chinese tourists after Hong Kong reopens its border with the Chinese mainland as the pandemic recedes and Hong Kong continues to make good progress with vaccination levels.

Additional Allocations

We also added names in Continental Europe and Singapore.

  • We added a position in German company Leg Immobilien, an affordable rental housing play with less regulatory risk given the firm's focus on the lower end of the market. We think the company should experience moderate internal growth that could be further improved through opportunistic acquisitions as well.
  • In Singapore, we adjusted our positioning to provide the portfolio with more upside potential. We initiated a position in Capitaland Integrated Commercial Trust, which owns prime retail and office space, and eliminated our holding in suburban mall owner Frasers CentrePoint, which we viewed as a more defensive investment.
  • In Spain, we initiated a position in Cellnex, the third-largest independent telecommunications tower company in Europe. The company should benefit from demand for greater tower coverage in Europe and increased spending for 5G upgrades. Cellnex also provides some protection against higher inflation as more than 60% of its leases are inflation-linked.


Largest Industry Apartment Residential 22.31% Was (31-Aug-2021) 23.22%
Other View complete Industry Diversification

Monthly Data as of 30-Sep-2021

Indicative Benchmark: FTSE EPRA Nareit Developed Index

Top Contributor^

Net Contribution 0.51%
Selection 0.61%

Top Detractor^

Data Centers
Net Contribution -0.18%


Quarterly Data as of 30-Sep-2021

Largest Overweight

Fund 9.81%
Indicative Benchmark 4.00%

Largest Underweight

Fund 8.34%
Indicative Benchmark 14.84%

Monthly Data as of 30-Sep-2021


Largest Region North America 62.70% Was (31-Aug-2021) 60.48%
Other View complete Region Diversification

Monthly Data as of 30-Sep-2021

Indicative Benchmark: FTSE EPRA Nareit Developed Index

Largest Overweight

North America
Fund 62.70%
Indicative Benchmark 61.18%

Largest Underweight

Fund 15.53%
Indicative Benchmark 16.21%

Monthly Data as of 30-Sep-2021


Largest Country United States 59.29% Was (31-Aug-2021) 56.98%
Other View complete Country Diversification

Monthly Data as of 30-Sep-2021

Indicative Benchmark: FTSE EPRA Nareit Developed Index

Largest Overweight

Fund 1.71%
Indicative Benchmark 0.00%

Largest Underweight

Fund 1.77%
Indicative Benchmark 4.29%

Monthly Data as of 30-Sep-2021

30-Sep-2021 - Jai Kapadia, Portfolio Manager ,
The U.S. remains the dominant country allocation within the portfolio. Real estate stocks in Japan, the UK, and Hong Kong also represent significant positions. In the U.S., we added to our position in a mall owner that we believe will benefit as the economy continues to reopen and demand for retail space and rent collections improve. In Sweden, we increased our position in a company that primarily owns office properties around Stockholm after valuations became more attractive. Meanwhile, we trimmed our position in a UK student housing provider on concerns that occupancy rates could face additional near-term COVID-related headwinds.

Team (As of 01-Oct-2021)

Jai Kapadia

Jai Kapadia is a sector portfolio manager in the International Equity Division. He manages the Global Real Estate Equity Strategy.

Jai’s investment experience began in 2004, and he has been with T. Rowe Price since 2011, beginning as an analyst and associate director of research in the Equity Research Group in Hong Kong, where he covered Asian conglomerates, real estate, and Indian pharmaceuticals. Prior to this, Jai was employed by Credit Suisse, covering telecommunication equipment stocks, and by Sirios Capital, covering consumer stocks. 

Jai 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 manager
  • Years at
    T. Rowe Price
  • Years investment
Michele A. Ward, CFA

Michele Ward is a portfolio specialist in the U.S. Equity Division. She acts as a proxy for equity portfolio managers with institutional clients, consultants, and prospects and supports the U.S. small- and mid-cap equity strategies and the Global Real Estate Equity and US Real Estate Equity Strategies. She also is a vice president of T. Rowe Price Group, Inc.  

Michele’s investment experience began in 1983, and she has been with T. Rowe Price since 2014, beginning in the U.S. Equity Division. Prior to this, Michele was employed by Hewitt EnnisKnupp as an associate partner, where she advised and educated plan sponsor investment committees on investment policy, plan structure, and regulatory and fiduciary issues.  

Michele earned a B.A., magna cum laude, in political science from Yale University and an M.B.A. from the Yale School of Management. She also has earned the Chartered Financial Analyst® designation. 

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

  • Years at
    T. Rowe Price
  • Years investment

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.