M
artin Barraud Standardized performance (%) as of September 30, 2024 Quarter YTD 1 Year 3 Years 5 Years 10 Years Since inception Class A (MUTF:ASRAX) shares inception: 05/31/02 NAV 11.40 7.00 20.50 0.61 1.89 3.74 6.85 Max. Load 5.5% 5.30 1.11 13.87 -1.28 0.73 3.16 6.58 Class R6 shares inception: 09/24/12 NAV 11.65 7.33 21.02 1.05 2.30 4.16 4.51 Class Y shares inception: 10/03/08 NAV 11.50 7.21 20.71 0.90 2.15 4.01 5.89 Custom Global Real Estate Income Index 16.07 11.77 28.86 0.39 1.39 4.06 - Total return ranking vs. Morningstar Global Real Estate category (Class A shares at NAV) - - 95% (178 of 187) 48% (83 of 179) 58% (111 of 172) 66% (81 of 118) -
Calendar year total returns (%) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Class A shares at NAV 14.29 -1.38 4.96 8.77 -4.33 18.67 -5.09 19.97 -20.93 11.86 Class R6 shares at NAV 14.89 -1.10 5.40 9.23 -3.91 19.19 -4.69 20.45 -20.63 12.34 Class Y shares at NAV 14.61 -1.15 5.23 9.06 -4.11 19.02 -4.86 20.22 -20.71 12.19 Custom Global Real Estate Income Index 15.02 -0.79 4.06 10.36 -5.63 21.91 -9.04 26.09 -25.09 9.67
Expense ratios per the current prospectus: Class A: Net: 1.21%, Total: 1.21%; Class R6: Net: 0.82%, Total: 0.82%; Class Y: Net: 0.96%, Total: 0.96%. Performance quoted is past performance and cannot guarantee comparable future results; current performance may be lower or higher. Visit Country Splash for the most recent month-end performance.
Manager perspective and outlook The third quarter saw economic stimulus measures and central banks easing monetary policy, boosting investors' risk appetites worldwide. Global listed real estate had a strong quarterly return, both absolutely and relative to general equities. We expect falling interest rates and modest economic growth to lead to good investment opportunities in real estate as a new cycle begins.
Portfolio positioning The fund's allocation was 72% real estate equities, 20% commercial mortgage-backed securities ('CMBS'), 7% preferred securities, 0% corporate bonds, and 1% cash at quarter end. We reduced debt portfolio exposure by selling two CMBS holdings in the US lodging sector due to less attractive underlying property fundamentals.
Asset mix (%) Dom Common Stock 43.85 Intl Common Stock 28.16 CMO - Non Agency 18.29 Dom Preferred Stock 7.33 Other 1.25 Cash 1.11
The fund's real estate equity exposure remains positioned for long-term growth with strong property fundamentals and better tenant conditions. Key overweights include industrials, data centers, infrastructure, and self-storage. We believe structural demand trends for data centers will remain intact given a solid earnings growth outlook coupled with artificial intelligence providing a significant tailwind for investor sentiment.
Portfolio positioning reflects our general view that the interest rate environment has become a tailwind for real estate, with some relative value opportunities emerging among more stable property types and sectors. The fund's largest exposure in the debt portfolio is in CMBS, which we believe are mispriced relative to their underlying property/sector fundamentals.
Performance highlights Top contributors (%) Issuer Return Contrib. to return Public Storage 27.58 0.95 Prologis, Inc. 12.97 0.71 Equinix, Inc. 17.93 0.68 Realty Income Corporation 21.73 0.58 LEG Immobilien SE 28.15 0.49
Top detractors (%) Issuer Return Contrib. to return NATIXIS COMMERCIAL MORTGAGE SECURITIES TRUST 2020-2PAC NCMS 2020-2PAC AMZ3 -24.90 -0.18 NATIXIS COMMERCIAL MORTGAGE SECURITIES TRUST 2020-2PAC NCMS 2020-2PAC AMZ2 -20.46 -0.02 Host Hotels & Resorts, Inc. -0.98 -0.01 Invitation Homes, Inc. -1.40 -0.01 Lineage, Inc. -1.23 0.00
The fund had a positive return for the quarter but underperformed its equity-only benchmark, the FTSE EPRA Nareit Developed Index. Contributors to performance included an overweight in infrastructure and security selection in the residential sector. Detractors from performance were primarily debt holdings in CMBS and preferred securities, as equities outperformed fixed income for the quarter.
