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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 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-May-2021 - Jai Kapadia, Portfolio Manager ,
We remain optimistic about the upside potential in real estate stocks. Over the coming quarters, the rollout of coronavirus vaccines should result in increasing consumer confidence and an improving employment picture. We remain focused on identifying and investing in companies that are positioned to thrive in a recovery and avoiding companies that we believe will need to raise capital or otherwise limit shareholder returns going forward.
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

�We remain optimistic about the upside potential in real estate stocks. 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. In many cases, we will begin to lap easy comparisons with regard to rents, occupancy, and expense trends in the second quarter and beyond. As such, an improving fundamental backdrop with increasing cash flows is likely to become more obvious as the year progresses.

Monetary policy is likely to remain accommodative to help bolster the recovery from the pandemic. In addition, real estate stock valuations are already priced at a historically wide spread to underlying interest rates. Dividend yields are attractive and upside to stocks is good even in a moderately rising rate environment.

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. As that happens, young people will form households, 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. Our well-located real estate investments are poised to benefit from these trends.

We also acknowledge that the private market for commercial real estate will continue to face loan defaults, foreclosures, and a continued write down in asset values. However, we believe the public stock market has largely reflected the challenges as evidenced by the negative returns in 2020. 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 gradually 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

Performance (Class I)

Annualised Performance

  1 YR 3 YR
5 YR
10 YR
Since Manager Inception
Fund % 35.14% 8.24% 5.74% 6.02% 7.89%
Indicative Benchmark % 35.92% 6.62% 5.56% 6.03% 8.32%
Excess Return % -0.78% 1.62% 0.18% -0.01% -0.43%

Inception Date 27-Oct-2008

Manager Inception Date 31-Mar-2021

Indicative Benchmark: FTSE EPRA Nareit Developed Index Net TRI

Data as of 31-May-2021

Performance figures calculated in USD

  1 YR 3 YR
5 YR
10 YR
Fund % 35.11% 6.08% 4.05% 5.83%
Indicative Benchmark % 34.65% 5.06% 3.86% 5.73%
Excess Return % 0.46% 1.02% 0.19% 0.10%

Inception Date 27-Oct-2008

Indicative Benchmark: FTSE EPRA Nareit Developed Index Net TRI

Data as of 31-Mar-2021

Performance figures calculated in USD

Recent Performance

  Month to DateData as of 17-Jun-2021 Quarter to DateData as of 17-Jun-2021 Year to DateData as of 17-Jun-2021 1 MonthData as of 31-May-2021 3 MonthsData as of 31-May-2021
Fund % 2.52% 10.60% 19.03% 2.52% 10.09%
Indicative Benchmark % 2.30% 10.82% 17.24% 1.79% 11.41%
Excess Return % 0.22% -0.22% 1.79% 0.73% -1.32%

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-May-2021 - Jai Kapadia, Portfolio Manager ,
The real estate sector produced positive returns in May, helped by a second consecutive month of declining longer-term interest rates and signs that the pandemic is waning in some regions. Within the portfolio, stock selection in the U.S. helped relative results, led by our positions in apartment REITs Avalonbay Communities and Camden Property Trust. The companies performed well as the economic recovery has allowed apartment owners to pull back concessions and start raising rents. Stock selection in Germany was aided by our position in Deutsche Wohnen, which owns Berlin-focused residential and health care properties. Shares rallied after the company’s management accepted a takeover offer from another property company. Stock selection in Japan also helped returns as our position in Mitsui Fudosan, a large real estate developer, has benefitted from management’s efforts to improve capital efficiency. Conversely, stock selection in China detracted from relative returns as data centre operator GDS Holdings had negative results. An underweight position in Sweden also held back returns as real estate stocks in the country significantly outperformed for the month.


Largest Holding Prologis 4.77% Was (31-Dec-2020) 4.83%
Other View Full Holdings Quarterly data as of  31-Mar-2021
Top 10 Holdings 31.07% View Top 10 Holdings Monthly data as of  31-May-2021

Largest Top Contributor^

By 1.16%
% of fund 4.78%

Largest Top Detractor^

Alexandria Real Estate
By -0.07%
% of fund 2.27%


Quarterly Data as of 31-Mar-2021

Top Purchase

Scentre (N)
Was (31-Dec-2020) 0%

Top Sale

Mirvac Group (E)
Was (31-Dec-2020) 1.97%

Quarterly Data as of 31-Mar-2021

31-Mar-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.

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 the stock's strong performance over the past year. We believe that the company is well positioned to benefit from supply-chain reconfiguration and growth in e-commerce.
  • Healthcare REIT Welltower, which has a diversified portfolio of properties across the senior housing, medical office, and skilled nursing/post-acute care areas, represents one of the largest positions in the portfolio. We believe Welltower could emerge from the pandemic stronger given its favorable liquidity profile and the likelihood for significantly increased demand for senior housing in the coming years.
  • We added to our holdings in Equinix, the leading player in the data center colocation category, as shares pulled back during the period. We believe that management's investment in the business should lead to a reacceleration in growth.


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 Tokyo Tatemono, one of Japan's largest real estate developers, during the quarter. Shares had been trading at attractive valuations, and we believe the company can benefit from its mix of office, hotel, residential, and commercial properties.
  • We eliminated the portfolio's position in Mitsubishi Estate, the largest Japanese developer and landlord, as we believe it offers limited upside potential in the near term.

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.

  • Unite Group is the largest developer and owner of purpose-built student accommodations in the UK and is the portfolio's largest position in the country. In our view, the company should benefit from strong student demand for the upcoming academic year, and further relaxation of travel restrictions could boost demand from international students.
  • We initiated a position in Whitbread, which is the largest hotel owner and operator in the UK, during the quarter. We believe Britain's relatively successful vaccine rollout could lead to a swift recovery in travel in the country.

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 reduced our position in Hang Lung Properties, which is focused on luxury retail real estate on the Chinese mainland, as the company's upside potential from a continued reopening of the economy appeared limited. Hang Lung should continue to benefit from a rise in onshore luxury spending in China.

Additional Allocations

We also added names in Australia and Continental Europe.

  • In Australia, we initiated a position in Scentre Group, which owns the largest and highest-quality retail real estate in the country. Scentre's retail traffic has largely recovered to pre-pandemic levels in most cities, and we like the potential for dividend growth over the next two to three years.
  • We started a position in CTP, a Netherlands-based company that owns modern logistics and light industrial properties in the Czech Republic and other European markets. We believe the company will benefit from strong demand for logistics real estate.


Largest Industry Apartment Residential 23.95% Was (30-Apr-2021) 24.86%
Other View complete Industry Diversification

Monthly Data as of 31-May-2021

Indicative Benchmark: FTSE EPRA Nareit Developed Index

Top Contributor^

Shopping Center
Net Contribution 0.57%
Selection 0.51%

Top Detractor^

Regional Mall
Net Contribution -0.43%


Quarterly Data as of 31-Mar-2021

Largest Overweight

Apartment Residential
Fund 23.95%
Indicative Benchmark 18.23%

Largest Underweight

Fund 8.53%
Indicative Benchmark 16.69%

Monthly Data as of 31-May-2021


Largest Region North America 58.63% Was (30-Apr-2021) 59.03%
Other View complete Region Diversification

Monthly Data as of 31-May-2021

Indicative Benchmark: FTSE EPRA Nareit Developed Index

Largest Overweight

North America
Fund 58.63%
Indicative Benchmark 58.21%

Largest Underweight

Fund 17.90%
Indicative Benchmark 18.46%

Monthly Data as of 31-May-2021


Largest Country United States 55.43% Was (30-Apr-2021) 55.85%
Other View complete Country Diversification

Monthly Data as of 31-May-2021

Indicative Benchmark: FTSE EPRA Nareit Developed Index

Largest Overweight

United Kingdom
Fund 7.57%
Indicative Benchmark 4.98%

Largest Underweight

Fund 1.59%
Indicative Benchmark 5.26%

Monthly Data as of 31-May-2021

31-May-2021 - Jai Kapadia, Portfolio Manager ,
The U.S. remains the dominant country allocation within the portfolio. Japan, Hong Kong, the UK, and Australia also represent significant positions. During the period, we initiated a position in a diversified property company in Germany and started a position in a Spanish telecom tower company. We eliminated our position in a UK holding focused on the retail and restaurant space. In Hong Kong, we eliminated a position in a China-focused property developer that we believe has less upside potential as the economy reopens.

Team (As of 10-Jun-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.