2 OREAX: Oppenheimer Real Estate Fund Key Features Objectives - - - PowerPoint PPT Presentation

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2 OREAX: Oppenheimer Real Estate Fund Key Features Objectives - - - PowerPoint PPT Presentation

Feb 28, 2023 42 likes •205 views

OREAX: Oppenheimer Real Estate Fund IYR: iShares US Real Estate ETF Presented by: Pauline Yang, Jerry Zhang, Rohan Bhatia, James Luo, Joakim Jiang 2 OREAX: Oppenheimer Real Estate Fund Key Features Objectives - Open-ended fund KEY DATA -

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SLIDE 1

OREAX: Oppenheimer Real Estate Fund IYR: iShares US Real Estate ETF

Presented by: Pauline Yang, Jerry Zhang, Rohan Bhatia, James Luo, Joakim Jiang

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SLIDE 2

OREAX: Oppenheimer Real Estate Fund

Objectives

  • The fund’s objective

is total return through investment in real estate securities.

  • Invests 80% of its net

assets in common stocks and other equity securities issued by real estate.

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KEY DATA

  • Net Expense Ratio: 1.33%
  • Total Net Assets:

$388.5Million

  • Returns:
  • Past year: 1.42%
  • Past 3 years: 0.91%
  • Past 5 years: 7.38%
  • Past Decade: 6.56%

Key Features

  • Open-ended fund

corporated in USA

  • Non-diversified
  • It primarily invests in

real estate investment trusts ("REITs") but may also invest in real estate operating companies ("REOCs") and other real estate related securities.

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3 Name Symbol Weight Capital

Prologis Inc PLD 7.86% 29.48B Digital Realty Trust Inc DLR 7.25% 21.04B Simon Property Group Inc SPG 5.76% 32.36B Equinix Inc EQIX 5.29% 18.69B Boston Properties Inc BXP 4.21% 19.37B UDR Inc UDR 4.13% 7.73B Essex Property Trust Inc ESS 4.03% 12.50B Welltower Inc WELL 3.86% 1.952T Regency Centers Corp REG 3.54% 4.488B First Industrial Realty Inc FR 3.52% 2.941B

OREAX: KEY HOLDINGS

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Key Facts

  • Size: $3.44 billion
  • Number of holdings: 124
  • Objective: track the investment

results of an index composed of U.S. equities in the real estate sector

  • Expense Ratio: 0.44%

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IYR: iShares US Real Estate ETF

Investment Strategies

  • “Passive” or indexing approach
  • Reduce the risk of active

management

  • Keep portfolio turnover low
  • Representative sampling indexing

strategies

  • Invests most of its assets in

securities of the Underlying Index and in depositary receipts

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SLIDE 5

5 Name Symbol Weight Capital

American Tower Corporation AMT 6.40% 33.21B Simon Property Group, Inc. SPG 4.89% 31.30B Crown Castle International Corp CCI 4.55% 32.23B Prologis, Inc PLDGP 3.40% 29.48B Equinix Inc EQIX 3.33% 18.69B Public Storage PSA 3.03% 10.73B Weyerhaeuser Company WY 2.72% 18.06B AvalonBay Communities, Inc AVB 2.30% 18.41B Equity Residential EQR 2.25% 20.57B Digital Realty Trust, Inc DLR 2.16% 21.49B

IYR: Top 10 Holdings

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COMMENTS ON TOTAL RETURN

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SLIDE 7

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COMMENTS ON TOTAL RETURN

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SLIDE 8

Price Movement - Exchange Rate

Currency exchange rate

  • Canadian Dollar Sinks
  • Causing OREAX&IYR

in $CAD sharper returns than in $US after March 12th

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SLIDE 9

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  • 2.98% for mutual fund and
  • 3.22% for ETF
  • US stock market falling
  • Bitcoin Effect
  • Dow Jones Industrial Average fell

more than 1800 points

  • Caused by the fear of rising

interest rates

Feb 5th

Price Movement - Biggest Plunges

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SLIDE 10

10

March 22th

  • At the end of our tracing
  • Global decline
  • S&P/TSX composite

index fell 1.76%

  • Hypothesis: long term

effect

Price Movement - Trump’s China Tariff Push

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SLIDE 11

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Risk Measurements

Mutual Fund (OREAX) ETF (IYR) S&P 500 Annualized Standard Deviation (US$) 17.51% 18.29% 20.63% Annualized Standard Deviation (C$) 17.64% 18.09% 20.63% Mutual Fund (US$) ETF (US$) Mutual Fund (C$) ETF (C$) Beta 0.334 0.736 0.242 0.607 OREAX IYR 3-YEAR S.D 13.35% 12.7% 5-YEAR S.D 14.07% 13.13% 3-YEAR Annual Return

  • 0.53%

0.19%

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SLIDE 12

Correlation

There is a moderate positive correlation between IYR and OREAX of 0.667(In US$) and of 0.663(In C$) Both of these are in the Real Estate Industry

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SLIDE 13

Correlation

Daily % Return Comparison of OREAX and IYR.

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Recommendation --- ETF(IYR)

  • Higher total return
  • Less Volatility/ Lower level of risks in a long term
  • Less Expense Ratio
  • Higher Liquidity
  • A stably increasing market price
  • Invests more Large-capital companies
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Thank You For Listening

Questions?

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SLIDE 16

References

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  • OREAX?P=OREAX Risk | Oppenheimer Real Estate Fund Cl Stock. (2018, March 27).

Retrieved March 27, 2018, from https://finance.yahoo.com/quote/OREAX?P=OREAX/risk/

  • OREAX Historical Prices | Oppenheimer Real Estate Fund Cl Stock. (2018, March 27).

Retrieved March 27, 2018, from https://ca.finance.yahoo.com/quote/OREAX/history?p=OREAX

  • Dow tumbles more than 700 points after Trump's China tariff push | CBC News. (n.d.).

Retrieved March 27, 2018, from http://www.cbc.ca/news/business/dollar-stocks-market-1.4587888

  • Fidelity. (n.d.). Performance & Risk: IYR. Retrieved March 27, 2018, from

https://screener.fidelity.com/ftgw/etf/goto/snapshot/performance.jhtml?symbols=IYR

  • I. (2015, April 14). What are some common measures of risk used in risk management?

Retrieved March 27, 2018, from https://www.investopedia.com/ask/answers/041415/what-are-some-common-measures-risk

  • used-risk-management.asp
  • Nath, T. (2018, February 06). How Investment Risk Is Quantified. Retrieved March 27,

2018, from https://www.investopedia.com/articles/investing/032415/how-investment-risk-quantified.as p