14 Jun 2018

Why REITs, why now?

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Why REITs, why now?
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In this paper we present the compelling reasons why investors’ portfolios would benefit from an allocation to REITs, and explain why we believe today’s market environment make it the right time to make that allocation.

Disclosure

Investing involves risk, including potential loss of principal. Potential investors should be aware of the many risks inherent to owning and investing in real estate, including: value fluctuations, capital market pricing volatility, liquidly risks, leverage, credit risk, occupancy risk, and legal risk.

*Small-cap stocks are represented by the Russell 2000 Index. Large-cap stocks are represented by the S&P 500. Mid-cap stocks are represented by the S&P MidCap 400 Index; foreign stocks are represented by the MSCI World Index; Global stocks are represented by the MSCI EAFE; U.S. REITs are represented by the FTSE NAREIT AII Equity REITs Index; Global REITs are represented by the S&P Global REIT Index; private U.S. real estate is represented by the NCREIF ODCE Index; high yield bonds are represented by the Bloomberg Barclays Capital U.S. Corporate High-Yield Index; investment-grade bonds are represented by the Bloomberg Barclays Capital U.S. Aggregate Bond Index.

Unless otherwise noted, the information in this document has been derived from sources believed to be accurate as of February 2018. Information derived from sources other than Principal Global Investors or its affiliates is believed to be reliable; however, we do not independently verify or guarantee its accuracy or validity. Past performance is not necessarily indicative or a guarantee of future performance and should not be relied upon to make an investment decision. Investing involves risk, and investors must be prepared to bear capital losses which might result from investments. The potential for profit is accompanied by the possibility of loss.

The information in this document contains general information only on investment matters. It does not take account of any investor’s investment objectives, particular needs or financial situation and should not be construed as specific investment advice, an opinion or recommendation or be relied on in any way as a guarantee, promise, forecast or prediction of future events regarding a particular investment or the markets in general. All expressions of opinion and predictions in this document are subject to change without notice. Any reference to a specific investment or security does not constitute a recommendation to buy, sell, or hold such investment or security, nor an indication that Principal Global Investors or its affiliates has recommended a specific security for any client account.

Subject to any contrary provisions of applicable law, Principal Financial Group, Inc., Its affiliates, and its officers, directors, employees, agents, disclaim any express or implied warranty of reliability or accuracy (including by reason of negligence) arising out of any for error or omission in this document or in the information or data provided in this document.

Any representations, example, or data not specifically attributed to a third party herein, has been calculated by, and can be attributed to Principal Global Investors. Principal Global Investors disclaims any and all express or implied warranties of reliability or accuracy arising out of any for error or omission attributable to any third party representation, example, or data provided herein.

All figures shown in this document are in U.S. dollars unless otherwise noted.

This document is issued in:

  • The United States by Principal Global Investors, LLC, which is regulated by the U.S. Securities and Exchange Commission.
  • Europe by Principal Global Investors (Europe) Limited, Level 1, 1 Wood Street, London EC2V 7JB, registered in England, No. 03819986, which has approved its contents and which is authorized and regulated by the Financial Conduct Authority.
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  • This document is issued by Principal Global Investors LLC, a branch registered in the Dubai International Financial Centre and authorized by the Dubai Financial Services Authority as a representative office and is delivered on an individual basis to the recipient and should not be passed on or otherwise distributed by the recipient to any other person or organization. This document is intended for sophisticated institutional and professional investors only.
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In Europe, this document is directly exclusively at Professional Clients and Eligible Counterparties and should not be relied upon by Retail Clients (all as defined by MiFID II). Principal Global Investors is a global asset management company and strategies may be accessed from entities other than that which is issuing this document. Clients that do not directly contact with Principal Global Investors (Europe) Limited (“PGIE”) will not benefit from the protections offered by the rules and regulations of the Financial Conduct Authority, including those enacted under MiFID II. Further, where clients do contract with PGIE, PGIE may delegate management authority to affiliates that are not authorised and regulated within Europe and in any such case, the client may not benefit from all protections offered by the rules and regulations of the Financial Conduct Authority, including those enacted under MiFID II

This material is not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation.

Principal, Principal and symbol design and Principal Financial Group are registered trademarks and service marks of Principal Financial Services, Inc., a Principal Financial Group company. Principal Global Investors is the asset management arm of the Principal Financial Group. Principal Real Estate Investors is the dedicated investment manager for Principal Global Investors.

Investing involves risk, including possible loss of principal. REIT securities are subject to risk factors associated with the real estate industry and tax factors of REIT registration. International and global investing involves greater risks such as currency fluctuations, political/social instability, and differing accounting standards. Asset allocation and diversification do not ensure a profit or protect against a loss.

Principal Funds are distributed by Principal Funds Distributor, Inc.

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