LIQUID REAL ESTATE

Invesco Global Real Estate Fund

Bringing daily liquidity to direct real estate. A unique strategy combining commercial real estate with liquid assets to provide access to a diversified global portfolio with daily pricing, and the potential for equity-like returns and bond-like income at potentially lower risk.

At a glance

The Invesco Global Real Estate Fund (GREF) is an Invesco Real Estate proprietary fund designed to provide investors with daily pricing and liquidity while accessing direct global real estate investments.

The strategy targets 70% direct, high quality real estate and 30% listed real estate and other liquid securities, cash and cash equivalents for liquidity. By adding a liquid component to the potential for stable income, diversification and strong relative performance (see chart below) offered by Global Real Estate investments, this strategy gives access to high quality, income-generating assets with daily pricing, making it particularly relevant for pension and insurance portfolios.

Strong relative performance, at lower volatility*
Simulated past performance is not a guide to future returns.
Simulated past performance is not a guide to future returns. Source: Invesco Real Estate, MSCI, Barclays and FTSE EPRA/NAREIT as of June 30, 2021. Global Equity Index: MSCI World Index, Global Bond Index: Barclays Global Aggregate Bond Index, Global REIT Index: FTSE EPRA/NAREIT Developed Index.

HIGH QUALITY DIRECT REAL ASSETS

Provides exposure to a portfolio of US$26bn with 196 high quality direct real estate assets in 15 countries (as at 30 June 2020).

FOCUS ON STABLE INCOME

Aims to provide 40-60% of gross total returns in income, which is generated by high quality credit leases.

STABLILITY AND DIVERSIFICATION

Historically low volatility compared to listed assets and low correlation with global equities and bonds.

Goals

The fund aims to provide, over the long term, an average annual gross total return in line with that of a global core real estate portfolio. The expectation is that, on average, income will comprise 40-60% the total return expressed in USD.

Investment process

The Invesco Global Real Estate Fund allocates approximately 70% to direct access to high quality global real estate via our Global Direct Real Estate (GDRE) strategy, and approximately 30% to a liquidity sleeve comprising of our Global Real Estate Income Securities strategy and cash/cash equivalents.

By investing in these portfolios, GREF gains exposure to over USD $26bn of underlying portfolio assets, composed of 196 investments in 15 different countries (as of 30 June 2020). 

The team

With over USD$79 billion in assets (as of 30 June 2020), Invesco Real Estate is one of the largest real estate investment management firms in the world.

Benefitting from the expertise of 571 real estate professionals in 21 offices, in 16 countries around the globe, we have an on-the-ground network of specialists who live-and-breath their local markets.

The team already holds approximately 400 institutional relationships globally, actively investing across the risk/return spectrum in core, value-add, and opportunistic strategies.

Rolling 12-month performance (net total return)

12 months period ending*) July 2016 - June 2017 July 2017 - June 2018 July 2018 - June 2019 July 2019 - June 2020 July 2020 - June 2021
Invesco GREF (actual)
 N/A N/A N/A -0.9% 8.1%
Invesco GREF (simulated) 6.1% 7.0% 6.4% -1.2% 13.3%
Global REIT Index 0.2% 5.6% 7.7% -16.3% 33.6%
Global Equity Index 18.2% 11.1% 6.3% 2.8% 39.2%
Global Bond Index -2.2% 1.4% 5.8% 4.2% 2.6%

Past performance does not predict future returns. Source: Invesco Real Estate, MSCI, Barclays, FTSE EPRA/NAREIT, Lipper and Morningstar as of June 30, 2021. Invesco Global Real Estate Fund simulated performance represents the weighted average of quarterly gross total returns of theunderlying strategies set at the strategic allocation of: 70% in underlying core direct real estate strategies (of which strategic allocation to US core, US Income, Euro core and Asia Core is 25%, 15%, 35%, 25% until Q4 2019 and 25%, 15%, 30%, 30% from Q1 2020, 15%, 25%, 30%, 30% from Q3 20 and assuming 0.2% of operational expenses at GDRE Luxlevel), 26.5% in Global Income Real Estate Securities Composite and 3.5% cash. Portfolio hedging is applied on EUR, AUD and JPY exposure GREF holds through underlying regional direct real estate fund. Based upon a hypothetical investment into GREF. The performance data is for illustrative purposes only and should not be taken as actual returns. This data does not indicate that if the Invesco Global Real Estate Fund had, in fact, existed during the shown time periods that it would have achieved the hypothetical results shown and is not indicative of future results. Actual results would have differed. In each case, we are assuming an investment in Invesco Global Real Estate Fund is made on 1 January, the underlying strategies for the GDRE Lux call the capital immediately, and that there are no distributions during that time (or that distributions are reinvested), and the rebalancingofthe portfolio among the underlying strategies of GDRE Lux would have occurred quarterly at the strategic allocation. Global Equity Index: MSCI World Index, Global Bond Index: BarclaysGlobal Aggregate Bond Index, Global REIT Index: FTSE EPRA/NAREIT Developed Index.

  • The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

    Property and land can be difficult to sell, so investors may not be able to sell such investments when they want to. The value of property is generally a matter of an independent valuer’s opinion and may not be realised.

    Changes in interest rates, rental yields and general economic conditions may result in fluctuations in the value of the fund.

    Real estate investments are exposed to counterparty risk, which is the risk that a counterpart is unable to deal with its obligations.

    The underlying funds might make use of debt to finance investments which may result in the fund being more leveraged and may result in greater fluctuations in the value of the fund.

    Many Real Estate investments are illiquid, meaning that the fund may not be able to sell them quickly at a fair price and/or that the redemptions may be delayed due to illiquidity of the underlying investments.

    The fund uses derivatives (complex instruments) and borrowings, which may result in the fund being significantly leveraged and may result in large fluctuations in the value of the fund.

  • This marketing communication is for Qualified Clients/Sophisticated Investors in Israel only and is not for consumer use. Please do not redistribute. Investors  should read the legal documents prior to investing. By accepting this document, you consent to communicate with us in English, unless you inform us otherwise. This document is not for consumer use, please do not redistribute. Data as at 30.09.2021, unless otherwise stated.

    This document is marketing material and is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory  requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before  publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell securities.

    This document is for informational purposes only and is not an offering. This document does not take into account individual objectives, taxation position or financial needs  and should not be relied upon as the sole factor in an investment making decision. Nor does this constitute a recommendation of the suitability of any investment strategy  for a particular investor. Investors should not invest in the fund solely based on the information provided in this document.

    Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and  are subject to change without notice.

    The fund, as a Reserved Alternative Investment Fund domiciled in Luxembourg, is authorised for Well-Informed Investors only (as defined in the Luxembourg Law dated 23 July 2016). The fund is offered in accordance with the Alternative Investment Fund Managers Directive. Marketing of the fund’s shares is permitted to Professional Clients in the UK in accordance with the Alternative Investment Fund Managers Directive. The fund will not be marketed, and marketing materials of the fund may only be distributed, in other jurisdictions without public solicitation and in compliance with the private placement rules set forth in the laws, rules and regulations of the jurisdictions concerned, if at all. The marketing of the fund in certain jurisdictions may be restricted by law. For more information on our funds and the relevant risks, please refer to the share class-specific Key Investor Information Documents (available in local language), the Annual or Interim Reports, the Prospectus, and constituent documents, available from www.invesco.eu. A summary of investor rights is available in English from https://www.invescomanagementcompany.lu. The management company may terminate marketing arrangements.

    This marketing document is not an invitation to subscribe for shares in the fund and is by way of information only, it should not be considered financial  advice. This does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make  such an offer or solicitation. Persons interested in acquiring the fund should inform themselves as to (i) the legal requirements in the countries of their nationality, residence,  ordinary residence or domicile; (ii) any foreign exchange controls and (iii) any relevant tax consequences. As with all investments, there are associated risks. This document  is by way of information only. Asset management services are provided by Invesco in accordance with appropriate local legislation and regulations. The fund is available only in jurisdictions where its promotion and sale is permitted. Not all share classes of this fund may be available for public sale in all jurisdictions and not all share classes  are the same nor do they necessarily suit every investor. Fee structure and minimum investment levels may vary dependent on share class chosen. Please check the most  recent version of the fund prospectus in relation to the criteria for the individual share classes and contact your local Invesco office for full details of the fund registration  status in your jurisdiction.

     

    Israel: Issued by Invesco Asset Management Limited, Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire RG9 1HH, UK. Authorised and regulated by the  Financial Conduct Authority. No action has been taken or will be taken in Israel that would permit a public offering of the Fund or distribution of this document to the public  in Israel. This Fund has not been approved by the Israel Securities Authority (the ISA). Accordingly, the Fund shall only be sold in Israel to an investor of the type listed in  the First Schedule to the Israeli Securities Law, 1968, which has confirmed in writing that it falls within one of the categories listed therein (accompanied by external  confirmation where this is required under ISA guidelines), that it is aware of the implications of being considered such an investor and consents thereto, and further that the  Fund is being purchased for its own account and not for the purpose of re-sale or distribution. This document may not be reproduced or used for any other purpose, nor be  furnished to any other person other than those to whom copies have been sent. Nothing in this document should be considered investment advice or investment marketing  as defined in the Regulation of Investment Advice, Investment Marketing and Portfolio Management Law, 1995 (“the Investment Advice Law”). Investors are encouraged to  seek competent investment advice from a locally licensed investment advisor prior to making any investment. Neither Invesco Ltd. Nor its subsidiaries are licensed under the  Investment Advice Law, nor does it carry the insurance as required of a licensee thereunder. This document does not constitute an offer to sell or solicitation of an offer to  buy any securities or fund units other than the fund offered hereby, nor does it constitute an offer to sell to or solicitation of an offer to buy from any person or persons in  any state or other jurisdiction in which such offer or solicitation would be unlawful, or in which the person making such offer or solicitation is not qualified to do so, or to a  person or persons to whom it is unlawful to make such offer or solicitation.