Equity

REIT SMA

FTSE Nareit All Equity REITs Index
Benchmark name
12/31/2014
Inception date
Select Equity Team
Team
$103.6K
Assets under management
Data as of 12/31/2023
SMA overview
Pursuing alpha in REITs through PMV discounts
The REIT SMA seeks long-term returns in U.S. real estate and commercial properties through a proprietary PMV process.

The SMA pursues total return through capital appreciation and current income over a full market cycle.

Key differentiators

  • Leverages in-depth PMV analysis to exploit market emotion in REITs by buying stocks trading at a discount to their PMV and capturing long-term opportunities
  • Exploits market emotion to generate alpha
  • Identifies important factors in PMV discounts like competitive position, key trends, management quality, and enterprise value

General facts

Weight average market cap

49.20

Dividend yield

3.32%

Quick resources

Performance

Average annual returns Add Minus

Average annual returns

(as of 12/31/2023)
12/31/2014
1M
3M
YTD
1Y
3Y
5Y
10Y
Inception
Composite (Pure Gross)
7.53
17.61
12.30
12.30
7.38
11.25
-
8.29
Composite (Net)
7.26
16.71
8.95
8.95
4.20
7.97
-
5.10
FTSE Nareit All Equity REITs Index
8.86
17.98
11.36
11.36
5.70
7.59
-
5.93

One-month, three-month and year-to-date returns are not annualized.

Performance is historical and does not guarantee future results. For more information, please refer to the GIPS composite report found in the documents section.

Calendar year Add Minus

Calendar year

(as of 12/31/2023)
2023
2022
2021
2020
2019
2018
2017
2016
2015
Fund
12.30
-22.88
42.97
3.37
33.18
-5.03
9.40
10.13
4.99
Benchmark
11.36
-24.95
41.30
-5.12
28.66
-4.04
-
-
-

Performance is historical and does not guarantee future results. For more information, please refer to the GIPS composite report found in the documents section.


Performance and volatility metrics Add Minus

Performance and volatility metrics

(as of 12/31/2023)
3 Year 5 Year
Alpha 1.74 3.92
Beta 0.97 0.91
Downside Market Capture Ratio 95.74 92.33
Information Ratio 0.43 0.79
R2 0.97 0.95
Sharpe Ratio 0.25 0.49
Standard Deviation 20.90 19.17
Tracking Error 3.90 4.64
Upside Market Capture Ratio 98.58 99.93
Correlation 0.98 0.98

Composition

Portfolio statistics Add Minus

Portfolio statistics

(as of 12/31/2023)
SMA Benchmark
Number of holdings
Top 10 holdings Add Minus

Top 10 holdings

(as of 12/31/2023)
Security
SMA
American Tower Corporation
11.36%
Prologis, Inc.
11.09%
Equinix, Inc.
11.04%
SBA Communications Corp. Class A
6.83%
Sun Communities, Inc.
6.12%
Extra Space Storage Inc.
6.01%
Welltower Inc.
5.59%
Terreno Realty Corporation
4.23%
VICI Properties Inc
4.05%
Alexandria Real Estate Equities, Inc.
4.04%
Top 10 represents 70.36% of total net assets

Largest company weights are based on market value of the representative account and not necessarily held in all client portfolios. The information shown is not intended to be, nor should it be construed to be, a recommendation to buy or sell an individual security. A list of all holdings from the prior one-year period is available upon request.

Sector allocation Add Minus

Sector allocation

(as of 12/31/2023)
Type
SMA
Benchmark
Cash & equivalents
1.98% -
Communication services
0.00% -
Consumer discretionary
0.00% -
Consumer staples
0.00% -
Energy
0.00% -
Financials
0.00% -
Health care
0.00% -
Industrials
0.00% -
Information technology
0.00% -
Materials
0.00% -
Real estate
98.02% 100.00%
Utilities
0.00% -

Sector weighting is based on a representative account within the Allspring Global Investments composite and may have changed since the date specified. Percent total may not add to 100% due to rounding.

Documents

Literature Date
Fact Sheet 12/31/2023 Download Download
Our team
Meet the investment team

On a public stock exchange, a stock typically trades between 50% and 80% of its PMV.

The team’s process is geared toward buying in the lower half of the trading range and selling as it pushes the upper limit.

Contact Us

We look forward to helping you with your investment needs

 

Market Risk: The values of, and/or the income generated by, securities held by a strategy may decline due to general market conditions or other factors, including those directly involving the issuers of such securities. Securities markets are volatile and may decline significantly in response to adverse issuer, regulatory, political, or economic developments. Different sectors of the market and different security types may react differently to such developments. Industry Concentration Risk: A strategy that concentrates its investments in an industry or group of industries is more vulnerable to adverse market, economic, regulatory, political or other developments affecting such industry or group of industries than a strategy that invests its assets more broadly. Management Risk: Investment decisions, techniques, analyses or models implemented by a strategy’s manager or sub-adviser in seeking to achieve the strategy’s investment objective may not produce the returns expected, may cause the strategy’s shares to lose value or may cause the strategy to underperform other strategies with similar investment objectives.

Allspring Managed Account Services (the firm) is a unit within Allspring Global Investments and is responsible for the management and administration of the Allspring Funds Management, LLC, retail separately managed account portfolios (wrap portfolios). Allspring Funds Management acts as a discretionary manager for separately managed accounts ("SMA") and as a non-discretionary model provider in a variety of managed account or wrap fee programs (“MA Programs”) sponsored by third party investment advisers, broker-dealers, or other financial services firms (a “Sponsor”). When acting as non-discretionary model provider, Allspring Funds Management responsibility is limited to providing non-discretionary investment recommendations (in the form of model portfolios) to the Sponsor. The Sponsor may use these recommendations in connection with its management of MA Program accounts. In these “model-based” programs, the Sponsor serves as the investment manager and maintains trade implementation responsibility.