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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.

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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 Bloomberg TRGRESI:LX

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

31-Oct-2021 - Jai Kapadia, Portfolio Manager ,
We remain optimistic about the potential in real estate stocks. We expect that increasing consumer activity and an improving employment picture will drive higher demand in many property types. Although valuations have generally recovered, we remain constructive on the earnings potential for several market segments 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.

Click for Manager Outlook


Manager's Outlook

Despite the strong year-to-date performance, we remain optimistic about the upside potential in real estate stocks given the return of pricing power in various sub-sectors. Over the coming quarters, we expect that the rollout of coronavirus vaccines will result in increasing consumer confidence and an improving employment picture. This will drive higher demand in many property types across commercial and residential real estate, while supply has been constrained by falling construction starts across many regions and property types. Additionally, we expect to see a continued divergence in performance between high-quality Grade A real estate versus Grade B locations. Our well-located real estate investments are poised to benefit from these trends.

While valuations based on net asset value and dividend yield spreads have generally recovered to historical levels, we remain constructive on the earnings potential for several property types in 2022 and 2023 driven by recovering rents and falling supply. Rents in real estate sub-sectors such as industrial, apartments, and self-storage, and even room rates in hotels, are likely to remain solid over the next 12 to 18 months.

As bottom-up stock pickers, we are also excited about the opportunities in front of us. We expect life to begin to get back to some semblance of normal. This explains our overweight positions in coastal apartments and hotels. We expect young people to return to cities, driving demand for apartment living; university campuses will reopen, driving demand for student housing; and consumers will feel more confident booking leisure and business travel, driving hotel demand. Office workers will begin to return to offices in a more significant way, reinvigorating urban environments, and senior citizens will be able to move into senior housing with more confidence. We are also seeing a recent pickup in retail leasing demand, which should benefit shopping mall landlords.

We remain focused on identifying and investing in those companies that should thrive in a recovery and avoiding those companies that we believe will need to raise capital or otherwise limit shareholder returns going forward. Our focus on owning well-located, high-quality real estate, as well as companies leveraged to the recovery as economies reopen, should guide us well through this period.

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

Annualised Performance

  1 YR 3 YR
5 YR
10 YR
Since Manager Inception
Fund % 45.43% 12.21% 7.87% 7.66% 16.71%
Indicative Benchmark % 42.12% 9.63% 7.00% 7.69% 14.65%
Excess Return % 3.31% 2.58% 0.87% -0.03% 2.06%

Inception Date 27-Oct-2008

Manager Inception Date 31-Mar-2021

Indicative Benchmark: FTSE EPRA Nareit Developed Index Net TRI

Data as of 31-Oct-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 26-Nov-2021 Quarter to DateData as of 26-Nov-2021 Year to DateData as of 26-Nov-2021 1 MonthData as of 31-Oct-2021 3 MonthsData as of 31-Oct-2021
Fund % -0.91% 4.01% 24.45% 4.97% 1.95%
Indicative Benchmark % -0.71% 5.23% 20.44% 5.98% 1.14%
Excess Return % -0.20% -1.22% 4.01% -1.01% 0.81%

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.

31-Oct-2021 - Jai Kapadia, Portfolio Manager ,
Global real estate stocks produced positive results in October, with European and North American markets delivering the strongest returns. Within the portfolio, stock selection in the UK hampered relative results. Our positions in a pair of London office landlords and a hotel chain underperformed as an increase in Covid cases raised concerns that return-to-office and travel plans could be delayed. Our underweight position in Sweden and an out-of-benchmark allocation to China also hindered performance. Sweden, one of the top performers in the FTSE EPRA Nareit Developed Index Net TRI benchmark, has benefited from a rebounding economy and an accommodative central bank, while China has faced concerns about the health of its property sector amid a slowing economy. Conversely, an underweight to Germany, one of the weakest performers in the benchmark, contributed to relative results. Stock selection in the country also added value, led by our position in an affordable housing provider. In Canada, stock selection was helped by our position in an industrial real estate company that has been supported by favorable supply/demand dynamics for warehouses in its core markets.


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 32.52% View Top 10 Holdings Monthly data as of  31-Oct-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-Sep-2021 - Jai Kapadia, Portfolio Manager ,

During the quarter, we remained focused on companies with quality properties, strong management teams, and solid balance sheets. We maintained overweight positions in sectors that we believe will benefit as economies reopen, such as apartment/residential and lodging, and we reduced our underweight in shopping malls as retail leasing demand improved. Conversely, we remain underweight in data centers and triple net real estate as valuations have become less attractive.

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 Essex Property Trust. As occupancy rates return to pre-pandemic levels, these companies should be well positioned to benefit from rising rents, and the supply outlook appears to be favorable given current development pipelines and labor and material shortages.
  • Simon Property Group represented one of our largest purchases during the period. We believe the mall owner will benefit as the economy continues to reopen and demand for retail space and rent collections improve. In the near term, Simon Property Group could also benefit from improving fundamentals at some of the retail brands it has recently acquired.
  • We eliminated our position in data center operator CyrusOne after the unexpected departure of the CEO.


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.

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, Derwent London has upgraded its outlook on rents as tenant sublets have decreased. We also believe the company will benefit from recent acquisitions.
  • We trimmed our position in UNITE, the leading provider of student housing in the UK, on concerns that occupancy rates could face additional near-term COVID-related headwinds. However, we have a positive view on the long-term fundamentals for the UK student accommodation market. �

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 support operating fundamentals over the long run.

  • We maintained a significant position in Sun Hung Kai Properties, which is a property developer and commercial landlord and one of the largest real estate companies in the world.


We used the downturn in the Chinese market to add to positions where we have a higher conviction, while eliminating a stock where we had a less favorable outlook.

  • We added to China Resources MixC Lifestyle, which manages China's largest portfolio of high-end malls. We believe the company will benefit from improving retail sales and new mall openings by its parent company, China Resources Land.
  • We also increased our position in hotel operator Huazhu after the surge in coronavirus cases caused by the delta variant led to a sell-off in the stock. In our view, Huazhu is the premier name in the Chinese hotel industry and is well positioned for a rebound in travel.
  • We eliminated data center operator GDS as we believe our positions in China Resources MixC Lifestyle and Huazhu offer better risk/reward potential.

Additional Allocations

We also added names in Australia and Singapore.

  • In Australia, we initiated a position in Centuria Office REIT, which is focused on suburban office properties. We believe Centuria will benefit from the strong demand for premium office assets in Australia as well as increasing occupancy rates as lockdowns are lifted in Melbourne and other areas. A high percentage of Centuria's office space is rented by government tenants, which limits the risk from a further drop in occupancy levels.
  • We also adjusted our positioning in Singapore. We started a new position in Lendlease Global and eliminated Capitaland.


Largest Industry Apartment Residential 22.51% Was (30-Sep-2021) 22.31%
Other View complete Industry Diversification

Monthly Data as of 31-Oct-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 9.36%
Indicative Benchmark 3.88%

Largest Underweight

Fund 7.24%
Indicative Benchmark 14.81%

Monthly Data as of 31-Oct-2021


Largest Region North America 63.38% Was (30-Sep-2021) 62.70%
Other View complete Region Diversification

Monthly Data as of 31-Oct-2021

Indicative Benchmark: FTSE EPRA Nareit Developed Index

Largest Overweight

North America
Fund 63.38%
Indicative Benchmark 62.54%

Largest Underweight

Middle East & Africa
Fund 0.00%
Indicative Benchmark 0.23%

Monthly Data as of 31-Oct-2021


Largest Country United States 59.64% Was (30-Sep-2021) 59.29%
Other View complete Country Diversification

Monthly Data as of 31-Oct-2021

Indicative Benchmark: FTSE EPRA Nareit Developed Index

Largest Overweight

Fund 1.61%
Indicative Benchmark 0.00%

Largest Underweight

Fund 1.76%
Indicative Benchmark 3.49%

Monthly Data as of 31-Oct-2021

31-Oct-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 initiated a position in a company that owns a large portfolio of open-air shopping centers. The company has used the disruption from the pandemic to improve its asset quality through opportunistic acquisitions and is now the largest retail REIT by property count. We also started a position in a high-quality Belgium-based healthcare real estate company that appears well positioned to benefit from the favorable demographic trends in the sector.

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.