The investment process utilizes internal proprietary research to invest in public real estate companies that we believe offer the best relative value relative to their underlying assets and earnings. We utilize a bottom up approach, valuing each security within our investment universe to arrive at a proprietary net asset value and earnings multiple and assessment of forward growth.
Analysts assess real estate specific factors, broader equity factors, as well as Environmental, Social and Governance (ESG) factors in their fundamental bottom-up analysis. These factors are then synthesized into valuation models to arrive at a Net Asset Value (NAV) and an Equity Multiple and forward growth rate for each issuer. This dual focus for the identification of value allows us to appreciate the going concern valuation of the company as well as the liquidation value of the tangible property portfolio.
We also incorporate top-down considerations into the portfolio construction process that seek to achieve diversified exposure across regions, countries and/or sectors and integrate forecasted fundamental inflections, macroeconomic considerations, geopolitical and country risk assessments, among other factors.
The investment philosophy and portfolio construction process is focused on three distinct pillars, including relative valuation, risk integration and high conviction position sizing.
Sell discipline is based upon relative valuation ranking and is monitored on a daily basis.
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 bottom-up driven, fundamental approach to determine relative value. MSIM global platform of shared services and capabilities enables investment team to focus on research and investing.
Long-standing Tenure of Investment Team
Comprised of long-tenured and highly experienced investment professionals. Analysts conduct an average of 1,500 engagements with management teams in our global investment universe on an annual basis and this outreach, coupled with dedicated focus on real estate fundamentals distinguish the team.
Proprietary Research Models
The investment process utilizes internal proprietary research database valuing each security within our investment universe to arrive at a proprietary net asset value and earnings multiple and assessment of forward growth. Analysts assess both real estate factors and equity factors in their fundamental bottom-up analysis to identify the best relative value relative to their underlying assets and earnings.
Effective February 9, 2022, Simon Robson Brown was added as a portfolio manager on the Strategy and Michiel te Paske and Sven Van Kemenade were removed as portfolio managers on the Strategy.