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Renaissance Global Real Estate Fund worth a closer look
12/13/2017 2:00:29 PM
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By Dave Paterson  | Wednesday, June 07, 2017


 

Modest economic growth combined with relatively low interest rates are expected to help provide a level of support for real estate and REITs in the coming months, including the Renaissance Global Real Estate Fund, which invests in a diversified portfolio of global REITs and other real estate securities.

The fund, offered by CIBC’s Renaissance Investments subsidiary, is sub-advised by New York-based Cohen & Steers Capital Management Inc. Cohen & Steers is one of the global leaders in real estate investing, with more than US$52 billion in assets under management, the vast majority of which is invested in real estate. The firm is well staffed, with more than 250 employees, and an investment team consisting of more than 50 people.

Managers Joseph Harvey, Chip McKinley, and Jon Cheigh use an investment process best described as a “relative value” approach, by which they seek out securities they believe are mispriced when compared with the underlying assets. To find these, the team uses a mix of top-down macro analysis and bottom-up security selection.

The top-down view helps shape their outlook for the various geographic regions and the different market segments. The bottom-up analysis involves a review of each company’s management, balance sheet, and property portfolio. To help assess this, they meet with each firm’s management and conduct site visits for the property portfolio. This all helps shape the inputs for the firm’s proprietary valuation model that is used to rank the selection universe.

The fund holds a diversified portfolio, with around 70 names of all sizes, although it tends to favour mid-cap names. The geographic mix is somewhat similar to its benchmark. Portfolio turnover is high, averaging more than 100% per year.

Top holdings currently include AvalonBay Communities Inc. (NYSE: AVB), Simon Property Group Inc. (NYSE: SPG), Mitsui Fudosan Co. Ltd. (TYO: 8801), HCP Inc. (NYSE: HCP), and Essex Property Trust Inc. (NYSE: ESS).

Given the quality of the investment team and reputation of Cohen & Steers, along with the investment process used, this global real estate fund is definitely worth a closer look.

Renaissance Global Real Estate Fund
Fund company:
CIBC Asset Management Inc.
Fund type:
Real Estate Equity
Fundata FundGrade Rating: B (April)
Style: Mid Cap Blend
Risk level: Medium to High
Load status: Optional
RRSP/RRIF suitability: Good
Manager: Joseph Harvey since Oct 2010; Chip McKinley since Oct 2010
MER: 2.63%
Fund code: ATL1255 (front-end load)
Minimum investment: $500

Dave Paterson, CFA, is the Director of Research, Investment Funds for D.A. Paterson & Associates Inc., a consulting firm specializing in providing research and due diligence on a variety of investment products. He is also the publisher of Dave Paterson’s Top Funds Report, offering regular commentary and in-depth analysis of Canada’s top investment funds. He uses a unique analytical approach to identify funds with strong, risk-adjusted returns, and regularly publishes his insights and analyses in Fund Library.

Notes and Disclaimer

© 2017 by Fund Library. All rights reserved. Reproduction in whole or in part by any means without prior written permission is prohibited.

Commissions, trailing commissions, management fees and expenses all may be associated with fund investments. Please read the simplified prospectus before investing. Mutual funds are not guaranteed and are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There can be no assurances that the fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the fund will be returned to you. Fund values change frequently and past performance may not be repeated. No guarantee of performance is made or implied. This article is for information purposes only and is not intended as personalized investment advice.

 
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