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

Just as wealth industry M&A was picking up, economic uncertainty could kill it again
Just as wealth industry M&A was picking up, economic uncertainty could kill it again

Deal volume increased post-election but now caution has taken over.

Want to get the most out of alts? You’ll have to do your homework
Want to get the most out of alts? You’ll have to do your homework

Advisors who expect an edge from alternatives' illiquidity premium – without understanding the underlying terms and explaining them to clients – have a world of learning to do.

'Finfluencer' Ponzi scheme defrauds investors of over $20M
'Finfluencer' Ponzi scheme defrauds investors of over $20M

The social influencer Tyler Bossetti pleaded guilty to wire fraud and aiding in the filing of false tax documents as a result of the real estate scheme, which ran from 2019 to 2023 and used platforms including Facebook and YouTube.

US annuity sales see sixth straight $100B+ quarter
US annuity sales see sixth straight $100B+ quarter

The latest LIMRA data release shows continued growth in RILAs, variable annuities, and FRD products, though researchers argue more education is still needed.

RIA moves: Thiel's Indivisible welcomes Ride Wealth Partners, $4B Beacon snaps up Astor
RIA moves: Thiel's Indivisible welcomes Ride Wealth Partners, $4B Beacon snaps up Astor

Indivisible Partners builds on its strategy to take turf in the independent space with its latest move in Colorado.

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.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave