The Strategy invests in a concentrated portfolio of U.S. REITs and other real estate securities that we believe are significantly undervalued, with an objective of delivering superior returns for investors with higher risk tolerance.
U.S. real estate strategies comparison
|U.S. Realty Total Return||U.S. Realty Focus|
|Investments||U.S. REITs and other real estate securities|
|Typical Holdings||35–55 (Diversified)||20–30 (Concentrated)|
|Expected Annual Turnover||75%–100%||200%–300%|
The asset class
Real estate securities provide the benefits of real estate ownership, while addressing some of the challenges that arise from direct investment. Historically, these securities have produced attractive returns, benefiting from recurring rental income and the potential for capital appreciation from rising property values, acquisitions and development activities. Read more
Our investment process
The strategy employs a relative-value investment process to identify securities that we believe are mispriced relative to underlying assets (net asset value, or NAV) and going concerns (dividend discount model, or DDM). Our analysts incorporate both quantitative and qualitative factors in their estimates, including management, strategy, asset quality, financial strength and corporate structure. The evaluation takes into account the varying business models of real estate companies, as well as differences in country risk and monetary policies. Based on our NAV and DDM estimates, we rank the investment universe using a proprietary valuation model. Judgments with respect to risk control, diversification, liquidity and other factors overlay the model’s output and assist the portfolio managers’ investment decisions. The output of this process is a portfolio of 15–45 holdings that demonstrate the following qualities:
- Trade at a significant discount to our fundamental valuation estimates
- Maintain a sound balance sheet and liquidity position
- Enjoy a strategic market position, affording the potential for superior long-term cash flow growth
- Possess sound corporate governance, an appropriate corporate structure and value-added management
Why invest with us
Cohen & Steers has been at the forefront of real estate investing for more than 25 years. Founded as the world's first investment manager dedicated to real estate securities, we have continued to expand our investment offerings as global listed property markets have evolved, leveraging our expertise to deliver superior results to our clients. Today, Cohen & Steers employs the world’s largest team of investment professionals dedicated to real estate securities, with portfolio managers, research analysts and traders located in offices in New York, London and Hong Kong.
|Thomas Bohjalian, CFA||Executive Vice President, U.S. Portfolio Manager||New York||Bio|
|Jon Cheigh||Executive Vice President, Global Portfolio Manager||New York||Bio|
|Jason Yablon||Vice President, Associate Portfolio Manager||New York||Bio|
|Laurel Durkay, CFA||Vice President, Research Analyst||New York|
|Mathew Kirschner, CFA||Vice President, Research Analyst||New York|
|John Murphy, CFA||Vice President, Research Analyst||New York|
How to invest »Learn more
The views and opinions are subject to change without notice and represents an assessment of the market environment at a specific point in time, should not be relied upon as legal, investment or tax advice and is not intended to predict or depict performance of any investment. We consider the information to be accurate, but we do not represent that it is complete or should be relied upon as the sole source of suitability for investment. Investors should consult their own advisors with respect to their individual circumstances.There is no guarantee that any historical trend illustrated above will be repeated in the future, and there is no way to predict precisely when such a trend will begin. There is no guarantee that a market forecast made in this commentary will be realized.
Cohen & Steers U.S. Registered open-end funds are distributed by Cohen & Steers Securities, LLC.
Please consider the investment objectives, risks, charges and expenses of any U.S. Registered open-end fund carefully before investing. A summary prospectus and prospectus containing this and other information may be obtained by calling 1-800-330-7348 or clicking here. Please read the prospectus carefully before investing.
Risks of Investing in Real Estate Securities
Risks of investing in real estate securities are similar to those associated with direct investments in real estate, including falling property values due to increasing vacancies or declining rents resulting from economic, legal, political or technological developments, lack of liquidity, limited diversification and sensitivity to certain economic factors such as interest rate changes and market recessions. Foreign securities involve special risks, including currency fluctuations, lower liquidity, political and economic uncertainties, and differences in accounting standards. Some international securities may represent small- and medium-sized companies, which may be more susceptible to price volatility and less liquidity than larger companies. No representation or warranty is made as to the efficacy of any particular strategy or fund or the actual returns that may be achieved.