REITs are still a good value, says ING Global's Ferguson

REITs are still a good value, says ING Global's Ferguson
An upturn is coming in the publicly traded real estate space, and investors need to be nimble to take advantage, says Ritson Ferguson, manager of the $1.9 billion ING Global Real Estate Fund
APR 06, 2010
An upturn is coming in the publicly traded real estate space, and investors need to be nimble to take advantage, according to Ritson Ferguson, manager of the $1.9 billion ING Global Real Estate Fund (IGLAX). “The market is still soft, but right now, REITs are still a good value,” he said. “The fundamentals are beginning to stabilize.” Mr. Ferguson has been a part of the fund's management team at ING Clarion Real Estate Securities since the fund was launched in 2001. He believes that a lot of the negative reports about the state of real estate are more indicative of the plight of private-investment funds that are holding overleveraged and underoccupied properties. “I live in the world of public markets, which is a little different than private equity,” he said. “The private market is looking in the rearview mirror, and everything is based on appraisals and sales.” From Mr. Ferguson's perspective, which concentrates on publicly traded REITs and real-estate-related companies, the “forward-looking listed markets” are rich with opportunities. “The listed market doesn't always get it right, and it tends to overdo it in both directions,” he said. “But the listed market anticipates trends, and the private market tends to follow by about 12 to 24 months.” Mr. Ferguson's fund has a 43% weighting in the Asia-Pacific region, followed by a 37% weighting in the Americas and a 20% weighting in Europe. The United States represents the largest single country, weighing at 34%. “The real estate recovery and upswing has already begun in places like China, Hong Kong and Australia, and the upswing will be later for the U.S. and parts of Europe,” he said. “I think things are still tough out there, but getting better, and the time to get involved is when the tide and perception is turning.” A few of the real estate investment trusts he likes right now are mall owner Simon Property Group Inc. (SPG) and Vornado Realty Trust (VNO), an office and retail-space owner. The fund, which averages about 90 positions, has seen some wild swings through the recent market turmoil. Last year, it gained 38%, while the S&P 500 was up 25%. In 2008, the fund declined by 45%, which compares with a 38% drop by the S&P 500. Portfolio Manager Perspectives are regular interviews with some of the most respected and influential fund managers in the investment industry. For more information, please visit InvestmentNews.com/pmperspectives .

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.