Investment Idea-Global Real Estate Fund (IGR)

Fund: CBRE Clarion Global Real Estate Income Fund(NYSE: IGR)

Price (2 Jan 2019): $6.18

Expected return: 8.2%/year at current price

CBRE Clarion Global Real Estate Income Fund(NYSE: IGR) listed on the New York Stock Exchange under the trading symbol IGR.

I have been researching for some time for an investment opportunity in international real estate and found an attractive fund:

The CBRE Clarion Global Real Estate Income Fund is an actively managed closed-end fund. IGR invests in publicly traded real estate securities including REITs and is well diversified by geographic region and commercial property sector. IGR may be suitable for investors looking for attractive monthly distributions, global diversification, and attractive total return potential.

Rationale for investment:

  • Global diversified exposure managed by very experienced company
  • An 8%+ annual dividend yield payable monthly (at current price of $6.75/share)
  • Rather low leverage for this sector <10%
  • Aprox. 15% discount to NAV

Investment Risks:

  • Real Estate investments are subject to changes in economic conditions, credit risk, and interest rate fluctuations;
  • The portfolio may experience more volatility and be exposed to greater risk than the portfolios of other funds;
  • End of cycle economy could impact real estate negatively.

Generally, the Fund will invest at least 80% of its assets in income-producing global real estate equity securities, which include common stocks, preferred securities (up to 20% of these may be below investment grade), warrants and convertible securities; up to 15% of assets may be invested in emerging market countries (which are subject to additional risks). Investment in the Fund is also subject to risk from the use of leverage.

Investors should consider a fund’s investment objectives, risks, charges and expenses carefully before investing. Please read the prospectus carefully before investing. Investing in closed-end funds involves risk, including possible loss of principal. Past performance does not guarantee future results.

Closed-end funds are traded on the secondary market through one of the stock exchanges. The Fund’s investment return and principal value will fluctuate so that an investor’s shares may be worth more or less than the original cost. Shares of closed-end funds may trade above (a premium) or below (a discount) the net asset value (NAV) of the fund’s portfolio. There is no assurance that the Fund will achieve its investment objective.

I or my affiliates may hold positions or other interests in securities mentioned in the Blog. Please see Disclaimer.

Source: Global Real Estate Income Fund Fact Sheet

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