The ECB’s Narrowing Window to Tackle Chronically Low Euro Area Inflation
PGIM Fixed Income shares market insights.
Real Estate Investment Trusts (REITs) sold off by more than 28%1 during the first quarter of 2020, a drop that was similar in magnitude and speed to that of the global financial crisis but was more pronounced because of the closure of social gathering-oriented real estate in most parts of the world. However, we believe there remains a strong opportunity in the REIT mar¬ket for active managers, as volatility and dispersion have created alpha opportunities. With the heightened level of uncertainty in the market, PGIM Real Estate’s information advantage, with real-time boots-on-the-ground information coming in from its private real estate asset management teams, is invaluable in determining the most likely impact on property values and on REIT NAVs.
Regional return dispersion in the first quarter of 2020 was driven primarily by how far along each region was in its COVID-19 curve, as the Asian REITs market outperformed the European and U.S. REITs markets.
Source: Bloomberg, PGIM Real Estate. 1Represents the FSTE EPRA/NAREIT Developed Index as of 31 March 2020. 2Represents the FTSE NAREIT Equity REITs Index as of 31 March 2020.
PERFORMANCE (%) AS OF 31 MAY 2020
|Net Returns||3-month||YTD||1-year||3-Year||ANNUALISED Since Inception (10 December 2015)|
|Fund USD I Acc||-11.88||-16.77||-10.01||1.25||1.96|
ROLLING 12-MONTH PERFORMANCE (%) TO YEAR ENDED 31 MAY 2020
|Fund USD I ACC||-||1.24||5.00||9.84||-10.01|
Source: PGIM, Inc. as of 30 April 2020.
The Benchmark is unmanaged and reflects the stock performance of companies engaged in specific aspects of the major real estate markets/regions of the world. Source: FTSE International Limited (“FTSE”) © FTSE 2020. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. "FT-SE®", "FOOTSIE®" and "FTSE4GOOD®" are trade marks of the London Stock Exchange Group companies. "NAREIT®" is a trade mark of the National Association of Real Estate Investment Trusts ("NAREIT”) and "EPRA®" is a trade mark of the European Public Real Estate Association ("EPRA”) and all are used by FTSE International Limited ("FTSE”) under licence. The FTSE [name of index] is calculated by FTSE. Neither FTSE, Euronext N. V., NAREIT nor EPRA sponsor, endorse or promote this product and are not in any way connected to it and do not accept any liability. All intellectual property rights in the index values and constituent list vests in FTSE, Euronext N. V., NAREIT and EPRA. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and / or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.
The Investment Manager (as defined below) may alter the benchmark of the Fund from time to time to any other benchmark which the Investment Manager determines, in its sole discretion, is generally representative of the Fund’s appropriate market. Shareholders will be notified in advance of any change in the benchmark of the Fund.
The financial index referenced herein as the benchmark is provided for informational purposes only. The use of benchmarks has limitations because portfolio holdings and characteristics of the Fund will differ from those of the benchmark, and such differences may be material. All indices and averages are unmanaged. You cannot make an investment directly in an index or average.
THE DISCLOSURES IN THIS DOCUMENT ARE NOT A COMPLETE LIST OF THE IMPORTANT DISCLOSURES INVOLVED IN INVESTING IN THE FUND AND IS SUBJECT TO THE MORE COMPLETE DISCLOSURES CONTAINED IN THE COMPANY’S PROSPECTUS AND SUPPLEMENT THERETO RELATED TO THE FUND, WHICH MUST BE REVIEWED CAREFULLY.
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Denmark: Skandinaviska Enskilda Banken AB, S E B Transaction Banking, SEB Merchant Banking, Bernstorffsgade 50, DK 1577 Copenhagen V, Denmark
France: Societe Generale Securities Services, 29 boulevard Haussmann, 75009, Paris, France
Germany: Marcard, Stein & Co. AG, Ballindamm 36, 20095 Hamburg, Germany
Italy: BNP PARIBAS Securities Services, Piazza Lina Bo Bardi 3, Italy
Luxembourg: Societe Generale Luxembourg (SG Luxembourg), 11, Avenue Emile Reuter, L- 2420 Luxembourg
Spain: Allfunds Bank S.A, c/ Estafeta no 6 (La Moraleja), Complejo Plaza de la Fuente -Edificio 3-28109, Alcobendas -Madrid- Espana
Sweden: MFEX Mutual Funds Exchange AB, Grev Turegatan 19, Box 5378, SE- 102 49 Stockholm, Sweden
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Information for persons in Chile: The securities offered in this document are foreign, so the rights and obligations of investors are subject to the legal framework of the issuer’s country of origin, Ireland, and, therefore, investors must inform themselves of the way and means through which they can exercise their rights. Likewise, given the securities are foreign, the supervision by the Comisión para el Mercado Financiero of Chile (“CMF”) will focus exclusively on the adequate performance of the information duties set forth by Norma de Carácter General 352 (“NCG 352”) of the CMF and, therefore, the supervision of both the securities and their issuer will be mainly exercised by the foreign regulator, the Central Bank of Ireland. The public information that will be provided for the securities will be exclusively that which is required by the Central Bank of Ireland. The accounting principles and auditing standards differ from the principles and rules applicable to issuers in Chile. According to section 196 of Law No. 18.045, foreign issuers, securities intermediaries, foreign securities depositories, and any other person involved in the registration, placement, deposit, trading and any other agreements relating to foreign securities or Securities Depositary Certificates (“CDVs”), which are subject to the rules set forth under Title XXIV of said law and the regulations enacted by the CMF, that violate such regulations, will be held liable pursuant to Law- Decree No. 3,538 of 1980 and Law No. 18.045. Investors will be able to obtain more information on the website of the CMF.
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Information for persons in Spain: Investments in the Funds should be made on the basis of the current Fund Documents (Prospectus, the Supplement, and the KIID), which are available along with the current annual and semi-annual reports free of charge. For the purposes of distribution in Spain, the Funds are registered with the official register of foreign collective investment schemes of the Spanish Securities Market Commission - Comision Nacional del Mercado de Valores (CNMV) under registration number 1581, where complete information is available from the Funds’ authorised distributors. The purchase of shares in the Funds shall be made on the basis of the Fund Documents. Prior to any purchase, investors shall receive in advance a copy of the KIID in Spanish, latest published economic report and a copy of the report of the planned types of marketing in Spain (Marketing Memorandum). The Funds’ Documents, together with the Marketing Memorandum, are available free of charge at the registered office of the Company and the locally authorised distributors as well as at the CNMV.
Information for persons in Switzerland: The funds are distributed to qualified investors as defined in the Swiss Collective Investment Schemes Act of 23 June 2006 (“CISA”) and its implementing ordinance (“CISO”). This funds are also registered with the Swiss Financial Market Supervisory Authority (“FINMA”) in accordance with the CISA and the CISO for distribution to non-qualified investors. The funds are organised as an Undertaking for Collective Investment in Transferable Securities (“UCITS”) under the laws of Ireland and authorized as a UCITS by the Central Bank of Ireland. These funds may not be available or suitable for certain investors. Prospective investors may obtain the current prospectus, supplements, certificate of incorporation, and KIIDs as well as the latest annual and semi-annual reports free of charge from the Swiss Representative and Paying Agent as well as at the registered office of PGIM Limited, 1-3 The Strand, Grand Buildings, Trafalgar Square, London, WC2N 5HR. The Swiss Representative and Paying Agent is State Street Bank International GmbH, Munich, Zurich Branch, Beethovenstrasse 19, CH-8027, Zurich.