Managing a Global Real Estate Securities Portfolio

Managing a portfolio of global real estate securities comes with extra layers of risks compared to a portfolio drawn from securities representing only one country.

Currency Risks and Benefits

An investment in equities outside an investor's home currency brings with it exposure to currency risk, which may either help or hinder overall total return, depending on the net changes in aggregate currency relationships. For a U.S.-based investor, currency risk comes in the form of ownership of companies whose shares are denominated in currencies other than the U.S. dollar or currencies that are pegged to the U.S. dollar. Since the United States represents approximately 42 percent of the benchmark (FTSE ...

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