Russell Global Real Estate Securities Fund (RREAX)

Russell Global Real Estate Securities Fund (RREAX) is a sector stock mutual fund. It invests mainly in real estate companies including REITs.

Russell Global Real Estate Securities Fund (RREAX)

The Russell Global Real Estate Securities Fund objective is to seek current income and long-term capital growth. This mutual fund uses its assets to buy real estate securities. It seeks to achieve its objective by concentrating its investments in equity securities of real estate companies economically tied to a number of countries around the world, including the U.S., in a globally diversified manner. The fund invests principally in securities of companies, known as real estate investment trusts and other REIT-like entities that own interests in real estate or real estate-related loans.

Fund Profile

Russell Fund

• Fund Inception Date: 02/ 27/ 2007
• Ticker Symbol: RREAX
• CUSIP: 782494405
• Beta (3yr): 0.93
• Rank in category (YTD): 41%
• Category: Global Real Estate
• Distribution: 4.90%
• Capital Gains: 0%
• Expense Ratio: 1.35%
• Net Assets: $ 1.9 billion
• Number of Years Up: 3 years
• Number of Years Down: 2 years
• Annual Turnover Rate: 64.00% 

updated on July 9, 2013

This Global Real Estate mutual fund has total net assets of $1.9 billion as of May 2013. It is currently managed by Bruce Eidelson. The 12-month trailing yield is 4.90%. It also has an annual expense ratio of 1.35%. There is a 0.25% 12b1 fee and 5.75% front end sales load fee. The fund has annual holdings turnover of May 6, 2013 is 64%.

Sector Stock Fund

This Russell Global Real Estate Securities fund has its best 1-year total return was in 2009 with 29.49%. The fund has 5-year average return of 3.91%. It has 2-stars rating from Morningstar. The fund has 1.25% of 30-Day SEC Yield as of May 10, 2013. The performance of this fund based on the load adjusted returns is as below:

• 1-year: 12.74%
• 3-year: 9.85%
• 5-year: 2.69%
• 10-year: 10.57%

The fee level is considered below average. The other classes of this fund are Class C (RRSCX), Class E (RREEX) and Class S (RRESX). The fund can be purchased from a limited list of brokerages like Schwab Retail, TD Ameritrade Trust Company, Raymond James, CommonWealth Universe, Merrill Edge, etc.

Russell Fund

The top 10 holdings as of March 2013 represent 26.1% of the total portfolio. They are Simon Property Group Inc (5.0%), Mitsui Fudosan Co Ltd (3.8%), Mitsubishi Estate Co Ltd (2.7%), Ventas Inc (2.7%), Westfield Group (2.5%), ProLogis Corp (2.0%), Uniball-Rodamco SE (2.0%), Public Storage Inc (1.9%), Vornado Realty Trust (1.7%) and Wharf Holdings Ltd (1.7%). Asia is the top global allocations of this fund with 34.7%. The top sector weightings are Diversified (18.3%) and Office/ Industrial (11.0%).

Principal risks of investing in this Russell fund are active management risk, multi-manager approach risk, equity securities risk, non-US and emerging market securities risk, currency risk, counterparty risk, real estate securities risk, derivatives risk, currency trading risk, liquidity risk, large redemptions risk, global financial market risk and industry concentration risk.

Disclosure: No Position