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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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SICAV

Global Real Estate Securities Fund

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

ISIN LU1237520744 Bloomberg TRGREQU:LX

3YR Return Annualised
(View Total Returns)

Total Assets
(USD)

14.73%
$11.2m

1YR Return
(View Total Returns)

Manager Tenure

29.19%
2yrs

Information Ratio
(5 Years)

Tracking Error
(5 Years)

0.12
3.85%

Inception Date 01-Jul-2016

Performance figures calculated in USD

31-Dec-2021 - Jai Kapadia, Portfolio Manager ,
Following a strong 2021, we are cautiously optimistic for global real estate returns in 2022. While valuations based on net asset value and dividend yield spreads are no longer cheap compared to historical averages, 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.

 

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

Regions

Total
Regions
4
Largest Region North America 64.60% Was (30-Sep-2021) 62.70%
Other View complete Region Diversification

Monthly Data as of 31-Dec-2021

Indicative Benchmark: FTSE EPRA Nareit Developed Index

Largest Overweight

Pacific Ex Japan
By0.47%
Fund 11.63%
Indicative Benchmark 11.15%

Largest Underweight

Japan
By-0.82%
Fund 8.16%
Indicative Benchmark 8.98%

Monthly Data as of 31-Dec-2021

Countries

Total
Countries
15
Largest Country United States 61.30% Was (30-Nov-2021) 60.78%
Other View complete Country Diversification

Monthly Data as of 31-Dec-2021

Indicative Benchmark: FTSE EPRA Nareit Developed Index

Largest Overweight

China
By1.29%
Fund 1.29%
Indicative Benchmark 0.00%

Largest Underweight

Sweden
By-1.19%
Fund 1.40%
Indicative Benchmark 2.59%

Monthly Data as of 31-Dec-2021

31-Dec-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 Germany, we added to a position in a company that owns a large multifamily residential portfolio. Despite market fears, we believe there is limited scope for tightening rent regulations in the upcoming legislative cycle, and we believe the company has the potential to outperform as market sentiment adjusts to the new governing coalition. We eliminated our position in a company focused on the affordable housing market that we believe has less upside potential.