Voya Real Estate SMA

Investment Philosophy

  • Identify undervalued real estate in the public markets through the use of proprietary private market intelligence
  • Allocate capital to regions and sectors where we believe real estate fundamentals are strongest
  • Identify individual companies where the real estate is undervalued
  • Maintain diversification of companies, property and geography
  • Establish positions based on conviction level of out-performance potential

Summary

Real estate strategy that invests in equity securities of companies primarily engaged in the business of owning, operating, managing, developing, acquiring and selling commercial real estate properties

Objective**

The Voya Real Estate strategy seeks to provide investors total return (dividends plus capital appreciation) by investing in a portfolio of equity securities of companies primarily engaged in the business of owning, operating, managing, developing, acquiring and selling commercial real estate properties.

Investment Process

The model for the strategy is provided by CBRE Clarion Real Estate Securities, LLC (CBRE Clarion) and implemented by Voya Investment Management Co. (Voya IM), the investment adviser. The investment process combines top-down regional and property sector allocation and bottom-up security selection with the following universe constraints:

Sector Asset Allocation

  • Macro economic trend analysis
  • Relative attractiveness of real estate, bonds and stocks
  • Property type weighting bands

Security Selection

  • Relative Value Analysis tool
  • Proprietary NAV Analysis
  • Local Market Research
  • 3-Year Earnings Forecasts
  • Meetings with Management

Risk Management Mitigation

  • Risk Mitigation
  • Sector Limits
  • Position Limits
  • Diversified Holdings (35-45)

**There is no guarantee that this objective will be achieved.

Past performance does not guarantee future results. There is no guarantee that any forecasts or opinions in this material will be realized. Manager commentary is for informational purposes only and does not constitute investment advice and is not a recommendation to purchase or sell any of the securities referenced.