Global Real Estate Securities Strategy
Global Real Estate Securities Strategy

Global Real Estate Securities Strategy

 
 
 
Summary

The Morgan Stanley Global Real Estate Strategy seeks attractive long-term, risk-adjusted returns by investing in publicly traded real estate securities, primarily in developed countries worldwide. To help achieve its objective, the strategy combines bottom-up and top-down analyses.

 
 
Investment Approach
Philosophy

The investment philosophy of the Global Listed Real Assets team is based on the premise that the performance of real estate securities will be most highly correlated with the underlying value of their assets. In aiming to achieve core real estate exposure in a cost-effective manner, the team invests in the equity securities of publicly listed real estate companies that it views as offering the best value relative to their underlying assets and growth prospects.

 
Differentiators
Global Presence with Local Resources

The team harnesses local knowledge and expertise of its regional investment professionals based in the U.S., Europe, and Asia, who manage each of the regional portfolios using the same long-term, value-oriented, bottom-up driven investment strategy.

Long-standing Tenure of Investment Team

Comprised of long-tenured and highly experienced investment professionals, the team has worked together for many years implementing and refining its disciplined investment process.

A Well-Defined Value-Orientated Investment Process

Since inception, our team has consistently implemented a well-defined investment process that is geared toward providing our clients with diversified exposure to the real estate asset class in a cost-efficient manner, and at the most favorable relative valuations.

Proprietary Research Models

With extensive experience and expertise in both the public and private real estate markets, the team maintains proprietary NAV models for every company in the investable universe; results (implied cap rates, implied price per square foot, NAV premium/discount) are triangulated versus private market real estate valuations.

 
 
 
Investment Process
Bottom-up value-driven approach for stock selection driven by proprietary NAV models
Top-down analysis seeks diversified major market segment exposure with an overweighting to segments with stocks we believe offer the best relative valuations
 
 
Portfolio Managers
Head of Global Listed Real Assets Investing
31 years industry experience
Managing Director
21 years industry experience
Managing Director
21 years industry experience
Managing Director
26 years industry experience
Managing Director
16 years industry experience
Managing Director
14 years industry experience
 
 
 
 

RISK CONSIDERATIONS  

Diversification does not protect you against a loss in a particular market; however it allows you to spread that risk across various asset classes.

There is no assurance that a portfolio will achieve its investment objective. Portfolios are subject to market risk, which is the possibility that the market values of securities owned by the portfolio will decline and that the value of portfolio shares may therefore be less than what investors paid for them. Accordingly, investors can lose money investing in this portfolio. Please be aware that this portfolio may be subject to certain additional risks. In general, equity securities’ values also fluctuate in response to activities specific to a company.  Investments in foreign marketsentail special risks such as currency, political, economic, market and liquidity risks.  The risks of investing in emerging market countries are greater than the risks generally associated with investments in foreign developed countries.  Real estate investments, including real estate investment trusts, are subject to risks similar to those associated with the direct ownership of real estate and they are sensitive to such factors as management skills and changes in tax laws.

This communication is only intended for and will be only distributed to persons resident in jurisdictions where such distribution or availability would not be contrary to local laws or regulations.

There is no guarantee that any investment strategy will work under all market conditions, and each investor should evaluate their ability to invest for the long-term, especially during periods of downturn in the market. Past performance is no guarantee of future results.

A separately managed account may not be suitable for all investors. Separate accounts managed according to the Strategy include a number of securities and will not necessarily track the performance of any index. Please consider the investment objectives, risks and fees of the Strategy carefully before investing. A minimum asset level is required. For important information about the investment manager, please refer to Form ADV Part 2.

Any views and opinions provided are those of the portfolio management team and are subject to change at any time due to market or economic conditions and may not necessarily come to pass. Furthermore, the views will not be updated or otherwise revised to reflect information that subsequently becomes available or circumstances existing, or changes occurring. The views expressed do not reflect the opinions of all portfolio managers at Morgan Stanley Investment Management (MSIM) or the views of the firm as a whole, and may not be reflected in all the strategies and products that the Firm offers.

All information provided has been prepared solely for information purposes and does not constitute an offer or a recommendation to buy or sell any particular security or to adopt any specific investment strategy. The information herein has not been based on a consideration of any individual investor circumstances and is not investment advice, nor should it be construed in any way as tax, accounting, legal or regulatory advice. To that end, investors should seek independent legal and financial advice, including advice as to tax consequences, before making any investment decision.

DEFINITIONS

Price-to-net-asset-value ratio (P/NAV) shows a company’s share price to the net asset value per share.

Property capitalization rate is the rate of return on a real estate investment property based on the expected income that the property will generate.

OTHER CONSIDERATIONS

The indexes are unmanaged and do not include any expenses, fees or sales charges. It is not possible to invest directly in an index. Any index referred to herein is the intellectual property (including registered trademarks) of the applicable licensor. Any product based on an index is in no way sponsored, endorsed, sold or promoted by the applicable licensor and it shall not have any liability with respect thereto.

The FTSE EPRA/NAREIT Developed Index is designed to track the performance of listed real estate companies and REITS worldwide. By making the index constituents free-float adjusted, liquidity, size and revenue screened, the series is suitable for use as the basis for investment products, such as derivatives and Exchange Traded Funds (ETFs).

The information presented represents how the portfolio management team generally implements its investment process under normal market conditions.

Morgan Stanley Investment Management is the asset management division of Morgan Stanley.  

 

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