Morningstar Advisor - Winter 2008 - (Page 13) Michael Grupe Executive vice president for research and investor outreach of the National Association of Real Estate Investment Trusts James Sempere Managing director, global real estate forecasting, for Charles Schwab Investment Management Robert Steers Co-chairman and co-chief executive officer of Cohen & Steers It’s the common denominator we see every day of our lives. Making information pertaining to real estate investment readily available to investors. The development boom of the 1980s. REITs. Figuring out how to find value in down markets. Sticking with it. We started our firm in 1986, and the real estate recovery didn’t really start heading up until 1992 or 1993. Howard Marks. He hired both myself and my partner, Marty Cohen, so he’s a good judge John Bogle. He pioneered the development of lowcost index funds to make diversified portfolio investing readily available to individual investors. Peter Lynch and the folks at Fidelity. of horseflesh. 5% to 10% 5% minimum 5% to 10% The party’s never over. 1 Maintaining their allocations through a period of underperformance or if they’re rebalancing to perhaps even increase those allocations back to the levels where they should be in the face of a weaker market and 2 addressing opportunities to invest their portfolios globally. The fast-moving stuff has tampered off, but there are a lot of good, solid opportunities across the globe. Keeping track of local markets. Staying out of the markets that are moving down and staying in the ones that are solid. Not by any means. Real estate fundamentals look solid and the valuations look terrific. Trying to gauge how much of a price correction that we might see at the property level as a result of the liquidity and subprime crises, as well as the softening of the economy. It’s important to maintain a diversified portfolio not only geographically, but also across main property types. Property type depends on where you are geographically. Residential housing here is not a good sector to be in. In Singapore, it’s a great sector to be in. Class A office buildings, as well as multifamily apartment portfolios. High-quality REITs now exist in Europe, the U.K., North America, Australia, Singapore, and Japan. Emerging markets. You’ve got a rise in the middle class in Asia across the board; the Australian markets have done very well and been solid. The U.K. and U.S. Research economist at the Federal Reserve Board. Building stone walls. Managing growth or emerging-growth stock money. Exactly where I live, Washington, D.C. Switzerland Bermuda MorningstarAdvisor.com 13 http://MorningstarAdvisor.com
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