Global Real Estate Securities

Investment Objective:

To provide clients with an excess return of 200-400 basis points over the FTSE EPRA/NAREIT Developed Index over a long-term investment cycle.

The Invesco Edge:

Relative to a given benchmark, Invesco’s Global Real Estate portfolios are generally distinguished by the following characteristics:

  • Higher, more consistent earnings growth
  • Better dividend coverage
  • Lower leverage
  • Larger market capitalizations
  • Better liquidity
  • Average market risk

Investment Strategy:

Our objective in real estate securities investment management is to achieve a higher-than-market return with average market risk over the long-term. We compare current equity valuation levels relative to long-term norms, the value of the underlying real estate assets, and management’s proven ability to produce favorable returns in the construction of our clients’ portfolios.

There are approximately 650 companies in the global universe of equity real estate securities. We focus on approximately 400 companies that meet minimum capitalization criterion and capture the characteristics of the relevant benchmark.

Invesco maintains well-diversified portfolios with exposure to major sectors of the market, although our stock selection and fundamental research may lead us to overweight or underweight particular countries or property types. Invesco focuses on larger, better quality companies that are expected to provide attractive risk-adjusted returns. Invesco also manages a Global ex-US version of this strategy, benchmarked to the FTSE EPRA/NAREIT Global Real Estate Index (ex-US).