Real Estate is an important asset class and represents approximately 50% of all global wealth. Investors who want real estate exposure but demand liquidity, diversification, inflation protection, and ease of ownership should consider global equity REIT's and real estate securities as part of a long-term investment strategy. Benefits also include sustainable yield and income growth potential, flexible capital structures, and relative risk, reward, and volatility. Global equity REIT's are well-positioned to manage through potentially challenging economic circumstances, including slower than expected economic growth, rising inflation or interest rate environments, and offer a measure of protection against the declining U.S. Dollar. The non-U.S. REIT sector is growing rapidly and has overtaken the U.S. in terms of total size. Continued growth is expected as more countries adopt REIT legislation and regional equity markets keep expanding. Unlike direct property investment or private equity, global listed REIT’s and exchange traded real estate securities offer liquidity and a much easier way to add diversification to a portfolio. According to a study conducted by Ibbotson Associates, the ownership of REIT shares within a portfolio has historically increased investors’ total return and/or lowered the overall risk in both equity and fixed-income portfolios over time.
The fund seeks to provide growth and inflation protected income through selective investments in global real estate markets while providing excellent liquidity, complete transparency, and targeted currency hedging.
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