Fletcher Wealth Management Profile Picture Investment Adviser

Fletcher Wealth Management

Financial Planner,Fletcher Wealth Management

  • EducationEast Tenessee State University
  • QualificationsMBA

REITs


  • Strategy Yield
  • Specialist focus Sector focus
  • Asset class Speciality asset class
This strategy aims to capitalize on discounts to fair value in publicly traded real estate investment trusts (REITs), while seeking stable dividend payments.
REITs help strengthen a portfolio in two important ways: They provide exposure to equity via property ownership, plus income from rent collection. In the REIT structure, a company is required to disburse at least 90% of its income. Publicly traded REITs offer liquidity, lower investment minimums, geographic diversification and other benefits not available with the ownership of real estate.
Primary research from a Morningstar screen for REITs with discounts to fair value and a history of paying dividends. Additional research is performed using publicly available information (e.g, financial statements, prospectuses) to determine company strength and ability to continue paying. Other factors, such as the macroeconomic environment and government regulation, are also considered before a purchase is made.
The portfolio usually will have up to 10 holdings. Each typically will have a weighting of no more than 15% of the portfolio. This portfolio may hold cash as it waits for opportunities.
Selling occurs when a holding hits a predetermined target price, develops problems with its operations, or can be replaced by a more attractively valued holding.
None.

Performance

0.4%

Month to date

MTD

0.4%

Quarter to date

QTD

6.9%

Year to date

YTD

Quarterly vs S&P500

Quarterly vs S&P500

Risk score

  • 13.1%

    Best quarter

  • -14.0%

    Worst quarter

  • $10,000 investment min
  • 1.5% fee

Performance detail

  • Manager (net of fees )
  • U.S. REIT ETF

Exposure

86.4%
  • REIT

Top 5 securities

11.3%
10.4%
9.7%
8.4%
8.3%
View all

Portfolio commentary

Performance Portfolio inception June 23, 2011

as of April 28, 2016 Manager (net of fees ) U.S. REIT ETF S&P 500
Month-to-date 0.4% -1.4% 0.8%
Quarter-to-date 0.4% -1.4% 0.8%
Last 365 Days 2.1% 2.4% -1.5%
Since inception (Annualized) 6.2% 7.2% 10.4%
2016 (YTD) 6.9% 3.6% 1.6%
2015 -7.5% -1.6% -0.7%
2014 22.4% 25.5% 11.4%
2013 2.7% -1.9% 29.6%
2012 14.8% 13.4% 13.4%

Risk metrics Last 365 days

as of April 28, 2016 Manager (net of fees ) U.S. REIT ETF S&P 500
Volatility 17.5% 17.7% 16.7%
Sharpe Ratio 0.11 0.12 - 0.10
Sortino Ratio 0.14 0.17 - 0.14
Maximum Drawdown -15.9% -12.4% -14.2%
Value-at-risk (95%, 1 week) -4.1% -4.1% -3.9%
vs. U.S. REIT ETF vs. S&P 500
Information Ratio - 0.03 0.28
Alpha 0.0% 3.7%
Beta 0.93 0.74
R-Squared 0.89 0.50

Latest transactions Average trades per month 0.1

Executed Symbol Security Type Price
02/18/15 SKT Tanger Factory Outlet Centers Inc Buy $36.84
09/18/13 HCP HCP Inc Buy $43.56
09/06/13 AMT American Tower Corp Buy $71.76
07/21/11 OFC Corporate Office Properties Trust Buy $31.91
07/21/11 VTR Ventas Inc Buy $55.53
07/18/11 O Realty Income Corp Buy $33.68
06/24/11 HPT Hospitality Properties Trust Buy $23.76
View all


Important Information

  1. Past performance is no guarantee of future results.
  2. Performance of the Portfolio Manager's account is calculated by Covestor on a daily time-weighted basis, including cash, dividends and earnings distributions and broker commissions. Manager returns include trades and positions that fail Covestor's trading rules, as a result, actual client returns will differ. Covestor advisory fees are simulated and applied retro-actively to present the portfolio return "net-of-fees".
  3. Average client returns are calculated by Covestor and are composed of the asset-weighted average returns of all active client investments (some of which may contain investment restrictions) to the underlying portfolio. These daily average returns are then linked together for the timeframe presented. These returns include cash, dividends, earnings distributions, brokerage commissions and Covestor advisory fees.
  4. All graph data is as of the end of day for the referenced period, unless otherwise specified. The investment minimum is the minimum investment required to follow a particular portfolio. The minimum amount is determined by Covestor, based on the characteristics of the underlying portfolio. It should not be considered as specific investment advice for your investment situation.
  5. The performance charts are provided for informational purposes only, and should not be used as the basis for making an investment decision. Variables such as corporate actions or foreign exchange may affect daily performance displays. We rely on mathematical formulas, computer programs, and pricing information from third-party vendors to provide these returns. Neither Covestor nor any of its data or content providers shall be liable for any errors in this information or any actions taken by you in reliance upon this information.
  6. Benchmark returns have been calculated by Covestor using a time-weighted calculation of daily index valuations. More
  7. Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value.
  8. All Portfolio Manager information including personal data, profiles, strategies, monthly investment reports, and historical results outside of Covestor has been provided by the Portfolio Manager. Covestor makes no representation or warranty of its accuracy, completeness or relevance and it does not represent the opinions of Covestor. Transaction history is available upon request. Portfolio classifications are provided by Covestor, and are intended to serve as a general guide.
  9. Not all transactions listed will appear in your account due to Covestor's trading rules and individual client constraints. Eligibility of these securities is monitored periodically, and may change over time. Actual client investment holdings may vary.
  10. Index returns do not reflect any management fees, transaction costs or expenses. Individuals cannot invest directly in an Index. For certain portfolios we use an investable ETF as a benchmark, in these cases returns include management fees, transaction costs and expenses.