Strategy Description
“Buy land, they’re not making it anymore.” Global REITs are listed real estate investments that pay high dividends and pass through their rental income to investors. They can be viewed as a hybrid between equities and bonds as they must pay out most of the income received.
Real estate, by its very nature of being a physical and limited asset provides potential inflation protection for investors. REITs benefit from inflation in 2 ways:
- Capital appreciation the value of properties and land owned increases
- Rent increases regularly negotiated leases can be increased in line with inflation
The portfolio targets a global exposure across 3 major real estate continents – North America, Europe and Asia Pacific, diversifying geographically and by type of real estate.
We score ~1,000 real estate names on Value, Quality, Safety, Payout, Technical and Sentiment characteristics to build a portfolio that targets a yield of ~4-5% per year. This robust quantitative scoring process ensures lesser-known but still excellent real estate companies are included.
For U.S. investors, the portfolio can be implemented in a Tax-Aware approach.
International investors can access this strategy in a U.S. Exposure and a Japanese Exposure.
The Global REIT strategy is also offered in an ETF only approach.
