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SICAV

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
(USD)

3.69%
$11.1m

1YR Return
(View Total Returns)

Manager Tenure

11.65%
4yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

-0.51
2.74%

Inception Date 27-Oct-2008

Performance figures calculated in USD

Other Literature

30-Sep-2019 - Nina Jones, Portfolio Manager,
Overall, the fundamental backdrop remains supportive. The U.S. Federal Reserve’s more dovish tone and its shift toward data dependent monetary policy suggest that we could have lower interest rates for longer. This scenario would be beneficial for real estate investors. In addition, we believe many real estate companies are well positioned to weather market volatility as they are operating with lower debt levels and more retained free cash flow than in the past.
Nina P.  Jones
Nina P. Jones, Portfolio Manager

Nina Jones is the lead portfolio manager for the T. Rowe Price Global Real Estate Strategy and is chairman of its Investment Advisory Committee. She is a vice president and an Investment Advisory Committee member of the Global Growth Stock, Capital Appreciation, and Financial Services Strategies. Mrs. Jones is a vice president of T. Rowe Price Group, Inc.

 

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.

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 % 11.65% 3.69% 5.40% 8.27% 3.16%
Indicative Benchmark % 13.00% 5.61% 6.81% 8.63% 4.88%
Excess Return % -1.35% -1.92% -1.41% -0.36% -1.72%

Inception Date 27-Oct-2008

Manager Inception Date 31-Mar-2015

Indicative Benchmark: FTSE EPRA Nareit Developed Index Net TRI

Data as of  30-Sep-2019

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Fund % 11.65% 3.69% 5.40% 8.27%
Indicative Benchmark % 13.00% 5.61% 6.81% 8.63%
Excess Return % -1.35% -1.92% -1.41% -0.36%

Inception Date 27-Oct-2008

Indicative Benchmark: FTSE EPRA Nareit Developed Index Net TRI

Data as of  30-Sep-2019

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 16-Oct-2019 Quarter to DateData as of 16-Oct-2019 Year to DateData as of 16-Oct-2019 1 MonthData as of 30-Sep-2019 3 MonthsData as of 30-Sep-2019
Fund % 0.99% 0.99% 20.56% 2.27% 4.27%
Indicative Benchmark % 1.23% 1.23% 21.29% 2.35% 4.63%
Excess Return % -0.24% -0.24% -0.73% -0.08% -0.36%

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.

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-2019 - Nina Jones, Portfolio Manager,
The real estate segment delivered positive results in September despite headwinds from rising bond yields. Within the portfolio, stock selection in Japan held back relative results. Our positions in a large residential J-REIT, Nippon Accommodations Fund, and a logistics J-REIT, Mitsui Fudosan Logistics Park, produced negative returns for the month, although year-to-date results have been robust. Within the U.S., stock selection also had a negative effect due to our positions in self-storage companies Cubesmart and Public Storage. Both companies have faced headwinds from an elevated supply environment, but we believe we are approaching the end of the supply cycle. On the positive side, stock selection in Finland contributed to relative results, led by our position in Kojamo, a large owner of multi-family residential assets. The company performed well after higher occupancy rates helped drive better-than-expected first-half results. Stock selection in Hong Kong also added value as shares of Hongkong Land Holdings, a leading office landlord, outperformed.

Holdings

Total
Holdings
65
Largest Holding Prologis 5.85% Was (30-Jun-2019) 5.80%
Other View Full Holdings Quarterly data as of 30-Sep-2019
Top 10 Holdings 32.40% View Top 10 Holdings Monthly data as of 30-Sep-2019

Largest Top Contributor^

Prologis
By 1.36%
% of fund 5.77%

Largest Top Detractor^

Sun Hung Kai Properties
By -0.93%
% of fund 2.82%

^Absolute

Quarterly Data as of 30-Sep-2019

Top Purchase

Equity LifeStyle Properties (N)
1.20%
Was (30-Jun-2019) 0.00%

Top Sale

Scentre (E)
0.00%
Was (30-Jun-2019) 1.51%

Quarterly Data as of 30-Sep-2019

31-Jul-2019 - Nina Jones, Portfolio Manager,
The U.S. remains the dominant country allocation within the portfolio at over 50%. Japan, Hong Kong, the UK, and Australia represent a significant portion of the equity allocation as well. During the month, we continued to find opportunities within names where we feel valuations may be underestimating the durability of growth or turnaround potential within the company. We initiated a position in Australia’s largest owner/manager of office properties. We also added a new position in a Chinese homebuilder, as we believe the Chinese government is likely to provide support to the property market as the economy slows.

Industry

Total
Industries
10
Largest Industry Apartment Residential 24.08% Was (31-Aug-2019) 23.77%
Other View complete Industry Diversification

Monthly Data as of 30-Sep-2019

Indicative Benchmark: FTSE EPRA Nareit Developed Index

Top Contributor^

Industrial
Net Contribution 0.40%
Industry
0.01%
Selection 0.39%

Top Detractor^

Healthcare
Net Contribution -0.32%
Industry
-0.21%
Selection
-0.11%

^Relative

Quarterly Data as of 30-Sep-2019

Largest Overweight

Apartment Residential
By7.34%
Fund 24.08%
Indicative Benchmark 16.74%

Largest Underweight

Diversified
By-6.65%
Fund 13.24%
Indicative Benchmark 19.89%

Monthly Data as of 30-Sep-2019

Regions

Total
Regions
5
Largest Region North America 56.38% Was (31-Aug-2019) 55.79%
Other View complete Region Diversification

Monthly Data as of 30-Sep-2019

Indicative Benchmark: FTSE EPRA Nareit Developed Index

Largest Overweight

Latin America
By0.47%
Fund 0.47%
Indicative Benchmark 0.00%

Largest Underweight

North America
By-2.63%
Fund 56.38%
Indicative Benchmark 59.00%

Monthly Data as of 30-Sep-2019

Countries

Total
Countries
17
Largest Country United States 54.23% Was (31-Aug-2019) 53.67%
Other View complete Country Diversification

Monthly Data as of 30-Sep-2019

Indicative Benchmark: FTSE EPRA Nareit Developed Index

Largest Overweight

Finland
By1.58%
Fund 1.71%
Indicative Benchmark 0.14%

Largest Underweight

Germany
By-1.73%
Fund 2.47%
Indicative Benchmark 4.20%

Monthly Data as of 30-Sep-2019

30-Sep-2019 - Nina Jones, Portfolio Manager,
The U.S. remains the dominant country allocation within the portfolio at over 50%. Japan, Hong Kong, the UK, and Australia represent a significant portion of the equity allocation as well. In Japan, we initiated a position in a company that primarily invests in high-quality office buildings in prime Tokyo locations. We believe it offers a relatively high dividend yield and attractive defensive qualities compared with other office J-REITs. We also added to our position in a company that provides office and laboratory space to life science tenants in the U.S.

Team (As of 31-Aug-2019)

Nina P.  Jones

Nina Jones is the lead portfolio manager for the T. Rowe Price Global Real Estate Strategy and is chairman of its Investment Advisory Committee. She is a vice president and an Investment Advisory Committee member of the Global Growth Stock, Capital Appreciation, and Financial Services Strategies. Mrs. Jones is a vice president of T. Rowe Price Group, Inc.

Mrs. Jones has 11 years of investment experience, all of which have been with T. Rowe Price. She joined the firm in 2008 after serving as a summer intern in 2007, covering payroll processor companies. Prior to joining the firm, she was a senior associate in audit and risk advisory for KPMG LLP.

Mrs. Jones 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. She is a certified public accountant.

  • Fund manager
    since
    2015
  • Years at
    T. Rowe Price
    11
  • Years investment
    experience
    11
Jai Kapadia

Jai Kapadia is 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.

Mr. Kapadia has 13 years of investment experience, eight of which have been with T. Rowe Price. Prior to joining the firm in 2011, Mr. Kapadia 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 MIT Sloan School of Management.

  • Fund manager
    since
    2019
  • Years at
    T. Rowe Price
    8
  • Years investment
    experience
    13
Caleb N. Fritz, CFA

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 at
    T. Rowe Price
    11
  • Years investment
    experience
    19

Fee Schedule

Share Class Minimum Initial Investment and Holding Amount Minimum Subsequent Investment Minimum Redemption Amount Sales Charge (up to) Investment Management Fee (up to) Ongoing Charges
Class A $15,000 $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 $15,000 $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.

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GIPS® Information

T. Rowe Price ("TRP") claims compliance with the Global Investment Performance Standards (GIPS®). TRP has been independently verified for the twenty one- year period ended June 30, 2017 by KPMG LLP. The verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.

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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