Invesco US Real Estate Securities SMA

Invesco US Real Estate Securities SMA

Equity - Sector equity

At a glance

Objective

Total return through growth of capital and current income


Universe

US-domiciled real estate equities with at least $100 million in market cap


Team
  • 20 years average portfolio manager experience
  • Six portfolio managers, two associate portfolio managers and 14 analysts
  • Ability to leverage market, property and company knowledge available through the direct real estate investment side of its business

Philosophy

Our philosophy is based on two fundamental principles:

Maximize
predictability and consistency of investment returns
Minimize
risk through strict attention to portfolio design

These two principles form the cornerstone of our investment process, which utilizes a systematic approach incorporating fundamental real estate research and securities analysis. Our research allows us to focus on a real estate security’s long-term value, and we believe that long-term performance may be determined by property market cycles, real estate asset quality and, for company investments, management expertise.

Process

Our disciplined investment process identifies our qualified investment universe, incorporates fundamental real estate analysis and securities analysis, and results in portfolio construction that aims to create an optimal risk and return.

Step 1:
Qualified universe
  • At least $100 million in market capitalization
  • Equity REIT focus
  • Sufficient trading volume to provide liquidity
Step 2:
Real estate analysis
  • Fundamental analysis of properties, property market cycles, management teams and corporate structure
  • Evaluate properties on the basis of location and physical attributes
  • Eliminate weaker or higher-risk companies

Step 3:
Securities analysis
  • Evaluate and rate stocks according to relative value
  • Identify occasions when investors over-react to short-term events
  • Use multiple valuation criteria
Step 4:
Portfolio construction
  • Statistically measure, set and monitor risk and return
  • Well-diversified with exposure to all major sectors of the market
  • Seek optimum risk/return