The global real estate securities fund is approved for distribution in Luxembourg and is available to investors via a segregated account and T. Rowe Price’s Luxembourg-domiciled Sicav range.
The fund’s objective is to provide long-term total return growth through investments in a diversified, global portfolio of real estate securities. The portfolio can include investments in real estate operating companies, real estate investment trusts or similar entities, as well as in transferable equity and equity-related securities of real estate-related companies but it will not directly own any real estate.
T. Rowe vice president and portfolio manager David Lee says: “Investing in real estate in global markets offers investors a chance to significantly diversify their portfolios. Local real estate supply and demand fundamentals are usually particular to a region and can have very little correlation with property fundamentals in other locations across the globe.
Income producing real estate companies in the United States, Hong Kong, Japan, United Kingdom, and Australia will be a large focus of the strategy. Long-term leases may offer better protection from income decreases in recessions, while they are able to prosper from pricing power when leases renew during strong economies.”