S P E C I A LT Y F U N D S
Renaissance Global Real Estate Fund (Class A) Investment Management Overview Manager Bios
Investment Management Approach
Joseph M. Harvey | 10-20-2010 Cohen & Steers
Joseph Harvey is a senior portfolio manager for real estate securities portfolios. Prior to joining the Cohen & Steers in 1992, Mr. Harvey was a vice president with Robert A. Stanger Co. for five years, where he was an analyst specializing in real estate and related securities for the firm’s research and consulting activities. Mr. Harvey has a BSE degree from Princeton University. Other Assets Managed
Since
Renaissance Glbl Real Estate Ccy Netrl A
10-10
Scott Crowe | 10-20-2010 Cohen & Steers Capital Management Inc.
Scott Crowe, senior vice president, is a global portfolio manager for real estate securities portfolios and oversees the global research process for real estate securities. He has 14 years of experience. Prior to joining the firm in 2007, Mr. Crowe was an executive director at UBS and served as global head of real estate. He also worked at UBS Warburg as a real estate analyst. Mr. Crowe has a Bachelor of Commerce degree from the University of New South Wales and graduated with honors with a finance degree from the University of Technology, Sydney. He is based in New York. Other Assets Managed
Since
Renaissance Glbl Real Estate Ccy Netrl A
10-10
Chip McKinley | 10-20-2010 Cohen & Steers
Chip McKinley is a portfolio manager for global real estate securities portfolios. Prior to joining Cohen & Steers in 2007, Mr. McKinley was a portfolio manager and REIT analyst at Franklin Templeton Real Estate Advisors. Previously, he was with Fidelity Investments and Cayuga Fund. Mr. McKinley has a BA degree from Southern Methodist University and an MBA degree from Cornell University. Other Assets Managed
Since
Renaissance Glbl Real Estate Ccy Netrl A
10-10
The Fund benefits from the expertise of Cohen & Steers, a leading investment manager of global real estate portfolios. Cohen & Steers employs a disciplined, valuation-driven approach that utilizes a team effort consisting of managers who are experts in their respective property sectors and countries. Collectively, they cover over 400 global companies.
valuation metrics include price-to-net asset value and multiple-to-growth ratio. The team then uses a proprietary valuation model to determine the optimal security weights to help construct the portfolio, and will take active positions against the benchmark. Risk is managed through the utilization of the valuation model to diversify the portfolio by region and property sector.
The research process involves both a top-down and bottom-up approach to build and maintain the portfolio. The top-down analysis focuses on key real estate themes that Cohen & Steers believe provide strong fundamental value creation opportunities. The top-down themes are supported with a bottom-up valuation discipline. The team analyzes specific property companies based on multiple factors, such as balance sheet, management, structure and real estate portfolio. Some of the primary
The result is a well diversified currency neutral portfolio, that is selected using a standardized, bottom-up approach to company research and valuation, along with a top-down view of the economy. With global real estate playing an increasingly important part of many pension portfolios, this Fund makes an excellent complement to a domestic portfolio and complements global infrastructure holdings.
Manager Commentary The share prices of global real estate securities were volatile over the period after posting gains earlier in the year. The volatility of the second quarter of 2012 was largely driven by renewed concern over global economic growth, as well as the ongoing sovereign debt and banking issues in Europe – where the spotlight increasingly moved from Greece to Spain. In this environment, investors moved their assets into perceived “safe havens” like the U.S. dollar. Yields on 10-year Treasury notes fell to their all-time lows as a result. In terms of strategy, the manager favours certain cyclical sectors (e.g., hotels and industrial companies) in the U. S., but also seeks to maintain a defensive component in
the fund. For the fund’s defensive component, the manager believes owners of high-quality malls are more appealing than the health care sector. In Europe, the fund holds companies the manager believes are well positioned to outperform while governments and consumers are deleveraging. The manager continues to prefer London offices and the Berlin residential market, as well as prime retail assets in northern Europe. In Hong Kong, the manager favours prime retail landlords. The manager has recently become more constructive regarding the Singapore market, favouring cyclical sectors such as hotels and offices. As at June 30, 2012
RENAISSANCE INVESTMENTS 131