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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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T. Rowe Price

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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)

2.43%
$6.0m

1YR Return
(View Total Returns)

Manager Tenure

-4.45%
5yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

-0.13
3.51%

Inception Date 27-Oct-2008

Performance figures calculated in USD

Other Literature

31-Dec-2020 - Nina Jones, Portfolio Manager,
We are optimistic about the upside potential for real estate stocks in the coming months. We expect that the rollout of coronavirus vaccines will result in increasing consumer confidence and an improving employment picture, which will support demand in many property types across commercial and residential real estate. In addition, construction starts have fallen, which could help lay the groundwork for a recovery in real estate fundamentals and cash flows.
Nina P.  Jones
Nina P. Jones, Portfolio Manager

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.

 

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 % -4.45% 2.43% 3.29% 5.26% 2.11%
Indicative Benchmark % -9.04% 1.52% 3.74% 5.44% 2.41%
Excess Return % 4.59% 0.91% -0.45% -0.18% -0.30%

Inception Date 27-Oct-2008

Manager Inception Date 31-Mar-2015

Indicative Benchmark: FTSE EPRA Nareit Developed Index Net TRI

Data as of 31-Dec-2020

Performance figures calculated in USD

  1 YR 3 YR
Annualised
5 YR
Annualised
10 YR
Annualised
Fund % -4.45% 2.43% 3.29% 5.26%
Indicative Benchmark % -9.04% 1.52% 3.74% 5.44%
Excess Return % 4.59% 0.91% -0.45% -0.18%

Inception Date 27-Oct-2008

Indicative Benchmark: FTSE EPRA Nareit Developed Index Net TRI

Data as of 31-Dec-2020

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 14-Jan-2021 Quarter to DateData as of 14-Jan-2021 Year to DateData as of 14-Jan-2021 1 MonthData as of 31-Dec-2020 3 MonthsData as of 31-Dec-2020
Fund % 0.00% 0.00% 0.00% 1.63% 11.39%
Indicative Benchmark % -0.88% -0.88% -0.88% 3.51% 13.26%
Excess Return % 0.88% 0.88% 0.88% -1.88% -1.87%

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.

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.

31-Dec-2020 - Nina Jones, Portfolio Manager,
The real estate sector gained in December amid a continued recovery from its late-March lows. Divergence in performance among property types continued, however, reflecting differing operating fundamentals, balance sheet strength, and cash flow levels. Within the portfolio, several of our U.S. apartment holdings gave back some gains after recording robust results in November. Stock selection in Germany also lagged as Berlin-focused property company Deutsche Wohnen posted positive results for the month but underperformed its peers. Conversely, stock selection in Australia helped performance due to our positions in Mirvac Group, a diversified REIT with urban properties that could benefit from a reopening of the economy, and industrial real estate company Goodman Group, which has been supported by accelerating e-commerce trends. Our position in Summit Industrial Income REIT in Canada also added value.

Holdings

Total
Holdings
66
Largest Holding Prologis 4.83% Was (30-Sep-2020) 5.91%
Other View Full Holdings Quarterly data as of  31-Dec-2020
Top 10 Holdings 29.62% View Top 10 Holdings Monthly data as of  31-Dec-2020

Largest Top Contributor^

Mitsui Fudosan
By 0.11%
% of fund 2.96%

Largest Top Detractor^

Prologis
By -3.32%
% of fund 4.80%

^Absolute

Quarterly Data as of 31-Dec-2020

Top Purchase

Japan Retail Fund Investment (N)
1.47%
Was (30-Sep-2020) 0%

Top Sale

Nippon Prologis REIT (E)
0.00%
Was (30-Sep-2020) 1.49%

Quarterly Data as of 31-Dec-2020

30-Sep-2020 - Nina Jones, Portfolio Manager,

During the quarter, we remained focused on companies with quality properties, strong management teams, and solid balance sheets. We are diversified across property types; although, given our bottom-up approach, we may be overweight or underweight particular subsectors at any given time. We pared holdings that faced deteriorating fundamentals in the wake of the economic downturn and reduced some names to manage position sizes, while adding to stocks that appeared to offer attractive valuations.

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, although we sold some shares following significant outperformance. We believe that the company is well positioned to benefit from supply-chain reconfiguration and growth in e-commerce.
  • We maintain a sizable position in AvalonBay Communities, one of the nation's leading apartment REITs, with assets located in high-barrier communities. The company has a superior management team and a solid balance sheet.
  • We initiated a position in Equinix, which is a leading data center operator with over 200 locations around the globe. Although we are concerned that the overall data center sector could be challenged by elevated supply and slowing growth in the near term, we believe Equinix's significant investment in technology and mission critical assets will allow it to command a pricing premium versus its peers.

Japan

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. Relatively few of the company's tenants have asked for rental concessions despite the economic slowdown, and management has remained focused on improving capital efficiency. We added to our position.
  • We reduced our exposure to industrial-focused companies Mitsui Fudosan Logistics Park and Nippon Prologis REIT after their strong performance during the initial phases of the pandemic.

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.

  • We added to Shaftesbury, which owns prime real estate in London's West End. We believe the stock could rebound once pandemic concerns abate.
  • We eliminated Capital & Counties after the company took an equity stake in Shaftesbury. The company owns a diversified portfolio, including London's Covent Garden.

Hong Kong

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

  • Our largest exposure is to Sun Hung Kai Properties, one of the largest-cap real estate companies in the world with rental properties and residential developments in Hong Kong and mainland China. Low mortgage rates and a supportive supply/demand backdrop should be beneficial for Sun Hung Kai.

Additional Allocations

We adjusted our positioning in Europe.

  • In Sweden, we added to our position in Fabege, a developer and owner of office properties. We believe the company is well positioned with good liquidity as well as a sizable development pipeline and land bank in Stockholm. We eliminated Hufvudstaden as we believe rents at the company's retail and office properties are likely to be pressured lower.

Industry

Total
Industries
11
Largest Industry Apartment Residential 25.55% Was (30-Nov-2020) 25.56%
Other View complete Industry Diversification

Monthly Data as of 31-Dec-2020

Indicative Benchmark: FTSE EPRA Nareit Developed Index

Top Contributor^

Office
Net Contribution 0.36%
Industry
0.09%
Selection 0.28%

Top Detractor^

Regional Mall
Net Contribution -1.01%
Industry
-0.72%
Selection
-0.29%

^Relative

Quarterly Data as of 31-Dec-2020

Largest Overweight

Apartment Residential
By7.26%
Fund 25.55%
Indicative Benchmark 18.28%

Largest Underweight

Diversified
By-6.17%
Fund 10.98%
Indicative Benchmark 17.15%

Monthly Data as of 31-Dec-2020

Regions

Total
Regions
4
Largest Region North America 56.27% Was (30-Nov-2020) 58.03%
Other View complete Region Diversification

Monthly Data as of 31-Dec-2020

Indicative Benchmark: FTSE EPRA Nareit Developed Index

Largest Overweight

North America
By0.35%
Fund 56.27%
Indicative Benchmark 55.92%

Largest Underweight

Japan
By-0.37%
Fund 11.05%
Indicative Benchmark 11.42%

Monthly Data as of 31-Dec-2020

Countries

Total
Countries
15
Largest Country United States 53.19% Was (30-Nov-2020) 54.91%
Other View complete Country Diversification

Monthly Data as of 31-Dec-2020

Indicative Benchmark: FTSE EPRA Nareit Developed Index

Largest Overweight

United Kingdom
By2.96%
Fund 7.94%
Indicative Benchmark 4.98%

Largest Underweight

Germany
By-3.42%
Fund 2.74%
Indicative Benchmark 6.17%

Monthly Data as of 31-Dec-2020

31-Dec-2020 - Nina Jones, Portfolio Manager,
The U.S. remains the dominant country allocation within the portfolio. Japan, Hong Kong, the UK, and Australia also represent significant positions. In the U.S., we initiated a position in an apartment REIT that was spun off by its parent company at an attractive valuation. In the UK, we added shares of a company that owns a high-quality portfolio of self-storage facilities. We also adjusted our Asian holdings. We initiated positions in a diversified real estate company in Singapore and a Chinese company that manages residential and retail properties and eliminated a Japanese industrial name after strong performance.

Team (As of 08-Jan-2021)

Nina P.  Jones

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 manager
    since
    2015
  • Years at
    T. Rowe Price
    12
  • Years investment
    experience
    12
Jai Kapadia

Jai Kapadia is a regional portfolio manager in the International Equity Division . He manages the Global Real Estate Equity Strategy and is responsible for stock selection for the Asia-Pacific region.  

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 joining the firm, 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
    since
    2019
  • Years at
    T. Rowe Price
    9
  • Years investment
    experience
    14
Caleb N. Fritz, CFA

Caleb Fritz is a portfolio specialist in the U.S. Equity Division. He acts as a proxy for equity portfolio managers with institutional clients, consultants, and prospects and supports the large-cap value strategies. Caleb also is a vice president of T. Rowe Price Group, Inc.

Caleb’s investment experience began in 2000. He was with T. Rowe Price from 2000 to 2003, beginning in the Participant Service Center, and returned in 2010 until the present. 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 returning to the firm, Caleb was employed by Legg Mason Capital Management as an associate analyst covering the health care sector.  

Caleb earned a B.A. and an M.A. from the University of South Florida. He 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
    13
  • Years investment
    experience
    20

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.