PAGEX
TRPrice Global Real Estate-Adv
Global Real Estate Exposure with PAGEX
TRPrice Global Real Estate-Adv (PAGEX) is a mutual fund designed to provide investors with long-term growth through a combination of capital appreciation and current income. The fund achieves this by investing at least 80% of its net assets in the equity securities of real estate companies worldwide, including those in the United States. This global approach allows investors to benefit from the growth potential of real estate markets across different regions, offering diversification beyond domestic investments. With a focus on real estate, PAGEX is particularly suited for investors looking to capitalize on the global real estate sector’s growth while receiving a steady income stream from dividends.
At A Glance
Executive Summary
PAGEX offers global real estate exposure with a 2.24% yield and a focus on capital appreciation, despite a higher expense ratio of 1.15%.
Global real estate exposure Potential for capital appreciation Current income through dividends
Higher expense ratio Negative recent performance metrics Limited sector diversification
Performance Analysis: A Mixed Bag
PAGEX has shown a mixed performance over various time frames. The fund’s one-year return stands at an impressive 22.60%, indicating strong recent performance. However, its three-year annualized return is -4.03%, reflecting some volatility and challenges in the mid-term. Over a five-year period, the fund has achieved a modest 2.02% return, while its inception return is a more robust 7.47%. These figures suggest that while PAGEX has the potential for high returns, particularly in favorable market conditions, it also carries a degree of risk that investors should consider. The fund’s performance relative to its benchmark, the MSCI World DivAdj Index, which had a one-year return of 31.60%, highlights the competitive nature of the global real estate market.
Portfolio Composition: A Focus on Real Estate Giants
The portfolio of PAGEX is heavily weighted towards large and medium-cap real estate companies, with top holdings including Prologis Inc, Equinix Inc, and Public Storage. These companies represent significant players in the real estate sector, providing the fund with stability and growth potential. The fund’s sector allocation is overwhelmingly in real estate, accounting for 96.73% of its investments, with minor allocations in cyclical industries. This concentrated focus on real estate allows PAGEX to leverage the growth opportunities within this sector, although it also means that the fund’s performance is closely tied to the real estate market’s dynamics.
Risk Metrics: Understanding the Volatility
Investors in PAGEX should be aware of the fund’s risk metrics, which indicate a certain level of volatility. The fund’s beta of 0.95 suggests that it moves in tandem with the market, albeit slightly less volatile. However, the negative alpha of -9.04% and a Sharpe ratio of -0.62 indicate that the fund has underperformed relative to its risk-adjusted expectations. The standard deviation of 4.23% and a Treynor ratio of -9.56 further highlight the fund’s risk profile. These metrics suggest that while PAGEX offers potential rewards, it also comes with risks that investors need to manage, particularly in volatile market conditions.
Comparative Analysis: How PAGEX Stacks Up
When compared to similar funds, PAGEX presents a unique profile. Its expense ratio of 1.15% is higher than some peers, such as William Blair Global Leaders-I (WGFIX) and WCM Focused International Growth-Inst (WCMIX), which have lower expense ratios. However, PAGEX offers a higher yield of 2.24%, which may appeal to income-focused investors. In terms of performance, PAGEX’s one-year return of 22.60% is competitive, though slightly lower than some peers like WCMIX, which achieved a 23.55% return. This comparison highlights PAGEX’s strengths in income generation, though it may not be the most cost-effective option for all investors.
Sector and Asset Allocation: A Real Estate-Centric Approach
PAGEX’s sector and asset allocation reflect its commitment to the real estate sector. With 96.73% of its investments in real estate, the fund is highly concentrated in this area, offering investors exposure to a sector known for its potential for capital appreciation and income generation. The fund’s asset allocation includes 62.34% in U.S. equity and 36.84% in non-U.S. equity, providing a balanced approach to global real estate investments. This allocation strategy allows PAGEX to capitalize on opportunities in both domestic and international markets, though it also means that the fund’s performance is heavily influenced by the real estate market’s overall health.
Expense Ratio and Yield: Balancing Costs and Income
The expense ratio of PAGEX is 1.15%, which is relatively high compared to some other funds in the same category. This higher cost may be a consideration for cost-conscious investors. However, the fund compensates for this with a yield of 2.24%, providing a steady income stream for investors. This yield is particularly attractive for those seeking income from their investments, as it offers a reliable return in the form of dividends. The balance between the expense ratio and yield is a critical factor for investors to consider, as it impacts the overall net return from the fund.
Conclusion: Is PAGEX Right for You?
TRPrice Global Real Estate-Adv (PAGEX) stands out for its focus on global real estate investments, offering both growth potential and income through dividends. While the fund has shown strong recent performance, its higher expense ratio and risk metrics suggest that it may not be suitable for all investors. Those looking for exposure to the real estate sector with a global perspective and who can tolerate some volatility may find PAGEX an attractive option. However, investors should weigh the fund’s costs against its income potential and consider their own risk tolerance and investment goals before committing.
Similar Securities
IGREX: Invesco Global Real Estate-R5 | Global Real Estate Investment
IGREX offers a 2.19% yield with a focus on global real estate, providing diversification and income potential. Its 0.98% expense ratio is competitive.
JERSX: Janus Henderson Global Real Estate-S | Global Real Estate Investment
JERSX offers global real estate exposure with a 2.45% yield, focusing on capital appreciation and income. High expense ratio but strong 1-year return.
PAGEX: TRPrice Global Real Estate-Adv | Global Real Estate Investment
PAGEX offers global real estate exposure with a 2.24% yield and a focus on capital appreciation, despite a higher expense ratio of 1.15%.
BARDX: iShares Developed Real Estate IxFd-InvA | Global Real Estate Exposure
BARDX offers a 4.27% yield with a focus on developed market real estate equities, providing a unique global exposure with a competitive expense ratio.
ASRCX: Invesco Global Real Estate Income-C | High Income Real Estate Fund
ASRCX offers high income with a 2.81% yield, focusing on real estate securities. It has a high expense ratio of 1.96% but provides global exposure.
Futher Reading
https://finance.yahoo.com/quote/PAGEX/”>Yahoo: TRPrice Global Real Estate-Adv
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