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Separately Managed Accounts

Real Estate SMA

Overview

Inception
Date

01.01.2002

Account
Minimum

$100,000

Philosophy

  • We believe that real estate assets are an important part of a diversified portfolio and can provide an attractive combination capital appreciation and current income.
  • We view real estate securities as offering investors a cost-effective, liquid way to participate in the asset class.
  • Aim to add value primarily through positive stock selection within each property type subsector.
  • Our long-term perspective values companies with multi-year catalysts and produces low portfolio turnover.

Process

  • Disciplined “relative value” approach combines the benefits of both quantitative and fundamental research.
  • Quantitative analysis: compare REITs to their property subsector peers on the basis of valuation, cash flow growth, and financial leverage.
  • Qualitative analysis: identify those REITs which offer the most attractive relative value and possess a catalyst to drive earnings and valuation.

Real Estate SMA

Management

View professional designations disclosures

Photo of Andrew  DiZio

Andrew DiZio, CFA®

Co-Portfolio Manager

Photo of Shawn  Gallagher

Shawn Gallagher, CFA®

Co-Portfolio Manager

Performance

All Performance as of 12.31.2023

Term QTR YTD 1 Year 3 Years 5 Years 10 Years Since Inception1
Real Estate SMA (Gross) 17.18 13.94 13.94 5.72 8.61 9.05 9.68
Real Estate SMA (Net) 16.95 12.99 12.99 4.94 7.88 8.36 8.99

The composite inception date is 12.31.2001. Performance is preliminary and is annualized for periods longer than one year. Net of fees performance returns are preliminary and are presented net of the investment management fees and trading expenses. Gross of fees performance returns reflect the deduction of trading costs: a client’s return will be reduced by the management fees and other expenses it may incur. Investment management fees are described in Sterling’s Form ADV 2A. Performance reflects the reinvestment of interest income and dividends and realized capital gains. The performance presented represents past performance and is no guarantee of future results. Performance is compared to an index: however, the volatility of an index varies greatly and investments cannot be made directly in an index. Market conditions vary from year to year and can result in a decline in market value due to material market or economic conditions. Sources: Russell Investments; Sterling Capital Management Analytics. Please refer to the GIPS Composite Report on the Fact Sheet linked above for additional disclosures. Net returns are calculated by deducting the highest applicable wrap fee of 3.00% annually from the gross composite return.

Real Estate SMA

Materials

SMA

Insights

02.06.2024 • Charles Wittmann, CFA®

The Lead - "Actively Aware"

- By utilizing our investment process and our investment team, we believe we can build portfolios different from the benchmark and provide an opportunity to generate returns above the benchmark over time. - Ironically, many passive indexes make active bets themselves. In 2023, the S&P 500 Dividend Aristocrats suffered its worst performance relative to the S&P 500® Index since 1999. - We’ve believed for over 20 years that portfolio managers with material amounts of their net worth invested alongside clients incentivizes portfolio diversification and active adjustments, rather than a static index where there is no vested interest. Our mission is to generate above-average returns with below-average risk over time.

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02.02.2024

Sterling Capital Management LLC to be acquired by Guardian Capital Group Limited

We are delighted to announce that Guardian Capital Group Limited has reached an agreement under which Guardian’s wholly-owned subsidiary Guardian Capital LLC will acquire Sterling Capital from Truist. Post-closing, Sterling Capital will become an independently-operated subsidiary of Guardian.

01.22.2024 • Whitney Stewart, CFA®

Are the S&P 493 and Small Caps Well-Positioned for Attractive Performance?

During the calendar year of 2023, the “Magnificent Seven” (M7) of Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla rallied 111% on average, outperforming the S&P 500® Equal Weight Index (+14% total return for 2024) by 97%, leading to an all-time high concentration for the seven largest stocks in the S&P 500® Index. Based on the factors below, some investors believe the rest of the S&P 493 and small-cap stocks are positioned for attractive returns in 2024 and beyond.

01.04.2024 • Charles Wittmann, CFA®

The Lead - "Seeking Dividend Advantage"

- We believe we can position clients in an advantageous spot by owning stocks whose companies have a track record of paying cash dividends on a regular basis and growing that corporate dividend throughout the year. - Perhaps this higher certainty of receiving dividends that contribute to an investor’s total return is why dividend growth stocks have performed well in the later stages of a Federal Reserve interest rate tightening cycle. - Looking back over time, the return of the S&P 500® Index without dividends is roughly 60% of the return with dividends.

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12.14.2023 • Andrew Richman, CTFA

Fed Preps for Pivot

A bond market that had just come off its strongest month in nearly 40 years in November continued to rally as the Federal Reserve’s (Fed’s) final meeting of 2023 supported the notion that the next move by the Fed will likely be rate cuts.

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12.01.2023

Sterling Capital Announces Liquidation of the Diverse Multi-Manager Active ETF

Sterling Capital Announces Liquidation of the Diverse Multi-Manager Active ETF

Contact

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