Global Sustainable Real Estate Securities Strategy

Global Sustainable Real Estate Securities Strategy

Global Sustainable Real Estate Securities Strategy


The Global Sustainable Real Estate Securities Strategy seeks to provide competitive total returns by utilizing proprietary research to invest in a portfolio of Calvert eligible global real estate securities determined to have the best forward total return potential based upon relative valuation and ESG considerations.

Investment Approach
Investment Philosophy and Process

The investment process utilizes internal proprietary research to assess real estate specific factors, broader equity factors, as well as ESG factors in order to calculate appropriate valuation metrics as part of a disciplined, bottom-up, fundamentally-driven investment methodology. Top-down considerations are also incorporated into the portfolio construction process, and the Strategy seeks to achieve exposure across regions, countries and/or sectors and integrate forecasted fundamental inflections, macroeconomic considerations, geopolitical and country risk assessments, among other factors. Risk integration is a primary focus in the portfolio construction process and common factor exposures and beta are closely monitored. The selection of investments is guided by The Calvert Principles for Responsible Investment, which provide a framework for considering ESG factors and the investment team will conduct targeted and thematic company engagement to drive positive change while seeking to create value for investors.

The investment philosophy and portfolio construction process is focused on four distinct pillars, including relative valuation, ESG Integration, risk integration and high conviction position sizing.

  1. Appreciation of relative valuation: Proprietary valuation tool ranks each security in universe on both net asset value and earnings multiple standardized for future growth. The importance of each metric varies by property sector in the final determination of relative value rank.
  2. ESG Integration: Investments guided by the Calvert Principles. Company engagement to drive positive change, improve sustainability and enhancing long-term value creation.
  3. Integration of risk analysis: Assessment of common factor exposure is important in portfolio construction and we are looking to optimize risk contribution from idiosyncratic factors as opposed to macro components. The team is focused on alpha contribution versus beta to limit downside and maximize upside capture.
  4. High conviction position sizing: Each security in the portfolio should have relative value support and a fully vetted investment thesis / identification of critical factors; capital is precious and each security is expected to meaningfully contribute; Focus on active share is important for portfolio construction.
  • Strategy differentiated by combining Calvert Research and Management’s 40+ years of experience in responsible investing with MSIM’s listed real estate expertise
  • Investment team works collaboratively with Calvert to construct a responsible portfolio that optimizes for sustainability and total return
  • Calvert Principles for Responsible Investment help guide the ESG research conducted with the ultimate goal of identifying those key performance indicators that are financially material to the value of listed real estate companies
  • Investment team conducts engagements, with the ultimate purposes of effecting positive change and increasing shareholder value
Portfolio Manager  
Laurel Durkay
Laurel Durkay
Head of Global Listed Real Assets
23 years industry experience








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