Download Delivering Active Management in REITs

Delivering Active
Management in REITs
Alpine Realty Income & Growth Fund has a long and prosperous history managed by Bob Gadsden for over
15 years. As an experienced investor and believer that active management can deliver additional returns
while meeting the needs of his shareholders, Bob’s investment process has evolved in an attempt to better
deliver consistent attractive return/risk results as the sector continues to mature.
Quarterly Performance (as of 6/30/17)
Fund
Alpine Realty Income
& Growth Fund
Average Annual Total Returns (%)
Share Sales
Symbol Class Charges YTD (%)
1YR
3YR
5YR
10YR
AIGYX
AIAGX
Since
Inception (%)
I / A†
30-Day
SEC Yield (%)
Expense Ratios* (%)
Inception
Date
Gross
Net
Unsub.
Sub
I
–
5.04
2.03
9.35
10.12
4.95
11.13
12/29/1998
1.36
1.06
1.92
2.18
A
Without
4.95
1.85
9.11
9.86
–
11.78
12/30/2011
1.61
1.31
1.58
1.82
A
With
-0.80
-3.74
7.08
8.62
–
10.63
12/30/2011
1.61
1.31
1.58
1.82
MSCI US REIT Index
2.66
-1.82
8.19
9.38
5.94
10.74 / 11.16
–
–
–
–
–
S&P 500 Index
9.34
17.90
9.61
14.63
7.18
5.74 / 15.00
–
–
–
–
®
Returns for the Class A shares with sales charge reflect a maximum sales charge of 5.50%. Performance for the Class A shares without sales charges does not reflect this
load. The fund imposes a 1.00% redemption fee on shares held less than 60 days. Performance does not reflect the redemption fee. Had the load or redemption fee been
reflected, total returns would be reduced.
Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate
so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the
performance quoted. Performance data current to the most recent month-end may be obtained by calling 1-877-785-5578 or visiting www.alpinefunds.com.
Performance for less than one year are cumulative figures and are not annualized. Returns assume the reinvestment of all distributions at net asset value and the deduction of all fund expenses.
†
Since inception performance numbers for the indices are calculated from the Fund’s Institutional Share class inception date/Class A shares inception date.
To the extent of the Fund’s historical performance resulted from gains derived from participation in IPOs and Secondary offerings, there is no guarantee that these results can be replicated or
that the Fund will be able to participate to the same degree in IPOs or secondary offerings in the future.
*Gross expenses are the Fund’s total annual operating expenses for the share class(es) shown in the Fund’s most current prospectus dated February 28, 2017. The Fund has a contractual fee waiver in effect
until February 28, 2019. To the extent the Funds’ expenses were reduced by these waivers, the Funds’ total returns were increased. In these cases, in the absence of the fee waivers, total returns would
be reduced. The contractual expense reimbursement level was not reached by the end of the period shown in the prospectus. Net Expense Ratios are current as of the most recent prospectus and are
applicable to investors.
Rolling 36 month performance analysis (AIGYX as of 6/30/17)
89.41
100.00 100.00
103.11 104.32 104.69
102.12
93.99
2.32
92.95
5.17
1.94
1.82
0.54
10-Years
5-Years
3-Years
% of Time Periods
Fund Performance
Above Benchmark
10-Years
5-Years
3-Years
Up Capture
Ratio
10-Years
5-Years
3-Years
Down Capture
Ratio
10-Years
5-Years
Alpha
3-Years
10-Years
5-Years
2.09
3-Years
Tracking Error
Source: Morningstar.
Benchmark – MSCI US REIT Index
S&P 500® Index is a total return, float-adjusted market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity
performance. Total return indexes include reinvestments of all dividends. The S&P 500® Index is a product of S&P Dow Jones Indices LLC and have been licensed for use by Alpine Woods Capital Investors,
LLC. Copyright © 2017 by S&P Dow Jones Indices LLC. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written the permission of S&P Dow Jones Indices LLC. S&P
Dow Jones Indices LLC, its affiliates, and third party licensors make no representation or warranty, express or implied, with respect to the Index and none of such parties shall have any liability for any errors,
omissions, or interruptions in the index or the data included therein.
Alpha is measure of performance vs. a benchmark on a risk-adjusted basis. A positive alpha of 1.0 means the portfolio has outperformed its benchmark index by 1%. Correspondingly, a similar negative
alpha would indicate an underperformance of 1%.
What has Bob learned about the sector for the past 15 years? “Commercial real estate should not be treated as a
monolithic asset class. Simplistic index investing ignores the fact that real estate is comprised of many property types
that are located in distinct geographic and economic regions, respond to different macro factors, and, as a result,
possess divergent return profiles during up and down cycles. Active management gives me the freedom to invest with
conviction in real estate companies highlighted by our fundamental research and to avoid those that have lower
probabilities of relative success at different points in the cycle.”
– Bob Gadsden, Portfolio Manager Alpine Realty Income & Growth Fund
Return/Risk Analysis, 7/1/07 to 6/30/17 (rolling 36 month calculation)
Longest Longest
Best
Worst
Best
Worst
Up Streak Run
Start
End
Down Streak Run
Month % Month % Quarter % Quarter % (months) Up %
Date
Date
(months) Down % Start Date End Date
AIGYX
33.56 -38.12
41.78 -42.18
9
22.89Dec-13Aug-14
4
-11.03Aug-16Nov-16
MSCI US REIT Index
31.31
34.12
9
20.51
4
-12.69
-31.89
-39.45
Dec-13
Aug-14
Aug-16
Nov-16
MSCI US REIT Index is a gross, total return, free float-adjusted market capitalization index that is comprised of equity REITs. The index is based on MSCI USA Investable Market Index (IMI) its parent
index which captures large, mid and small caps securities. With 144 constituents, it represents about 99% of the US REIT universe and securities are classified in the REIT sector according to the
Global Industry Classification Standard (GICS®). It however excludes Mortgage REIT and selected Specialized REITs. This index reinvests as much as possible of a company’s dividend distributions. The
reinvested amount is equal to the total dividend amount distributed to persons residing in the country of the dividend-paying company. Gross total return indexes do not, however, include any tax credits.
Source: MSCI. MSCI data may not be reproduced or used for any other purpose. MSCI provides no warranties, has not prepared or approved this report, and has no liability hereunder. An investor cannot
invest directly in an index.
Investment Process
Portfolio
Construction
Macroview
Top Down
Bottom Up
Fundamental
Analysis
Benchmark
REIT Index Neutral
(50%–70%)
Demographics
Property Types
Economic Cycle
Supply/Demand
INVESTMENT PRODUCTS: NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Drivers
MSCI US
REIT
Index
100%
Our investment process starts with an
evaluation of both the macroeconomic
environment and the state of individual U.S.
real estate markets. We reassess the key
drivers of real estate performance against
our investable universe, the MSCI US REIT
Index, and other outside index opportunities
as the economic cycle evolves. Each
position is thoroughly researched with a
focus on valuation and total return potential.
Ultimately, a portfolio is constructed with
50–70% similar to the MSCI US REIT Index
and 30–50% either outside the index or
actively managed over/under positions
versus the index.
Value Bias
Individual Company
Analysis
Allocation
Range
High Conviction
(30%–50%)
Portfolio Characterstics
• Fully invested
• Seeks above-average
distribution rate
• Large-, mid-, small-cap
companies
Yield information is shown only for Funds that have a monthly or quarterly distribution. 30-Day SEC Yield shows calculation at unsubsidized expense levels (Unsub.) and subsidized expense levels (Sub.).
Fund holdings and sector allocations are subject to change at any time and should not be considered recommendations to buy or sell any security.
To the extent that the Fund engaged in leverage, performance may have been affected.
Upside capture ratio is calculated by taking the fund’s monthly return during periods of positive return and dividing it by the benchmark return during that same period. Downside capture ratio is
calculated by taking the fund’s monthly return during periods of negative return and dividing it by the benchmark return during that same period.
Tracking error is the amount by which the performance of the portfolio differed from that of the benchmark.
Alpha is a measure of the difference between a fund’s actual returns and its expected performance, given its level of risk as measured by beta.
Run up % is the cumulative return during a period of positive performance. Run down % is the cumulative return during a period of negative performance.
Risks: The Fund is subject to concentration risk, meaning the fund may concentrate portfolio assets in companies within the same or related industry. Therefore, the Fund is more exposed
to volatility within that industry than a fund that was not concentrated. Investments in real estate securities may involve greater risk and volatility including greater exposure to economic
downturns and changes in real estate values, rents, property taxes, interest rates, tax and other laws. A REIT’s share price may decline because of adverse developments affecting the real
estate industry. Investing in dividend-paying stocks involves the risk that such stocks may fall out favor with investors and underperform the market. In addition, there is the possibility that
such companies could reduce or eliminate the payment of dividends in the future or the anticipated acceleration of dividends could not occur. The fund may invest in preferred stocks and
convertible securities. The values of such securities typically have an inverse relationship with changes in the prevailing interest rate. Securities with longer maturities generally involve a
greater risk of fluctuations in the value resulting from changes in interest rates. Medium- and small-capitalization companies tend to have limited liquidity and greater price volatility than
large-capitalization companies. The Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Investments in debt securities typically
decrease in value when interest rates rise. The Fund may participate in initial public offerings (“IPOs”) or Secondary offerings which may result in a magnified impact on the performance of
the Fund. IPO’s and Secondary offerings are frequently volatile in price and may increase the turnover of the Fund, which may lead to increased expenses. The fund may use leverage which
may exaggerate the effect of any increase or decrease in the value of portfolio securities or the Net Asset Value of the fund, and money borrowed will be subject to interest costs.
INVESTORS SHOULD CONSIDER THE FUND’S INVESTMENT OBJECTIVES,
RISKS, CHARGES AND EXPENSES CAREFULLY BEFORE INVESTING. THE
PROSPECTUS OR THE SUMMARY PROSPECTUS CONTAINS THIS AND
OTHER INFORMATION ABOUT A FUND. TO OBTAIN A FREE PROSPECTUS,
PLEASE VIEW THE PRODUCT SPECIFIC PAGE ON WWW.ALPINEFUNDS.COM
AND CLICK ON THE PROSPECTUS LINK. AN INVESTOR SHOULD READ THE
PROSPECTUS CAREFULLY BEFORE INVESTING.
Mutual fund investing involves risk. Principal loss is possible.
Alpine Woods Capital Investors, LLC is the adviser to the Alpine open-end Funds.
The Alpine open-end Mutual Funds are distributed by Quasar Distributors, LLC.
© 2017 Alpine Woods Capital Investors, LLC. All rights reserved. SI-2Q16-V1