American Century Investments introduced the Global Real Estate Fund last Monday, citing growing investor demand for exposure to domestic and international real estate securities.
Global Real Estate seeks to outperform the MSCI AC World IMI Real Estate Index with lower volatility over a full market cycle, according to the fund firm, which is based in Kansas City, Mo. At least 75% of the portfolio’s weight will be invested in developed market real estate-related securities and up to 25% in emerging markets.
American Century’s new fund is being led by veteran Senior Portfolio Manager Steven Brown, while the fund’s investment analysts are Steven Rodriguez and Vishal Govil.
“In the last five years, we have seen a shift in preference to global investing as clients seek higher returns and ways to possibly reduce the impact of inflation,” said Brown, in a press release. “The fund has the added benefit of potentially increasing investors’ portfolio diversification.”
On Friday, NAREIT Senior Vice President of Research and Industry Information Brad Case said July 2011 was another strong month for REITs, as equity REITs gained more than 1% for the month. The broader REIT industry was up 0.4% in July vs. a 2% decline for the broader stock market.
REITs have gained more than 10% for the first seven months of 2011, compared to less than 4% for the broader market, according to Case.
American Century’s new fund is being led by veteran Senior Portfolio Manager Steven Brown, while the fund’s investment analysts are Steven Rodriguez and Vishal Govil. The company says the fund is classified as non-diversified and thus may hold large positions in a small number of securities.
American Century Investments is privately controlled and gives some 40% of its profits to support research that aims to find cures for genetically-based diseases including cancer, diabetes and dementia.