Delaware Investments Delaware Investments Delaware Investments

Real Estate Securities and Income Solutions (RESIS) team

REIT and Income Solutions (RESIS) team

Investing beyond the numbers

Bob Zenouzi

Bob Zenouzi, chief investment officer for the Real Estate Securities and Income Solutions (RESIS) group at Delaware Investments, on the art of investing. Run time (0:45)

The views expressed represent the Manager’s assessment of the Fund and market environment as of August 2012, and should not be considered a recommendation to buy, hold, or sell any security, and should not be relied on as research or investment advice.

Our team

Investment philosophy

We believe that attractive investments in the REIT market can best be identified by utilizing a dual (property-and security-level) bottom-up (stock-by-stock), fundamental approach to research. Real estate pricing is driven by two factors: fundamentals and the capital markets.

Fundamentals are determined by local demand and supply factors and changes in the prices of debt and equity capital directly impact real estate valuations. Further, we believe in constructing a portfolio which seeks to represent the best relative values in the marketplace and emphasizes companies with stable, predictable cash flow growth that should produce consistent excess returns over the long term at moderate risk levels for our clients. In global portfolios, we combine this approach with a top-down overlay that emphasizes country investment conditions.

Investment team

Bob Zenouzi

Babak “Bob” Zenouzi 

Chief Investment Officer — Real Estate Securities and Income Solutions (RESIS)

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Damon J. Andres, CFA

Senior Portfolio Manager

(View bio)

Scott P. Hastings, CFA, CPA

Senior Equity Analyst

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Penghui Sun 

Equity Analyst

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Listen to Bob Zenouzi describe his team’s dual bottom-up, fundamental approach to research. Run time (0:32)

The views expressed represent the Manager’s assessment of the Fund and market environment as of August 2012, and should not be considered a recommendation to buy, hold, or sell any security, and should not be relied on as research or investment advice.

Video: Art vs science
Investment philosophy: Real estate is a spread business...

Real estate is a spread business, not a growth business

In our opinion, real estate is about spread investing, not growth investing. We have created a proprietary model, which calculates the growth implied in the current share prices of REITs, becoming aggressive when we believe low or negative growth is priced (betting on a wide “spread”) and reducing risk when we believe investors are paying for growth.

* Earnings before interest, taxes, depreciation, and amortization.

Our team
Investment philosophy: REITs' implied long-term growth

REITs' implied long-term growth*

Real estate is a capital intensive business; valuations are heavily dependent on the cost and availability of capital. We believe investors make money on real estate by spread investing; thus, understanding the cost and availability of the credit markets is an essential starting point to any real estate analysis. In our view, the cost and availability of global credit often have a much greater impact on real estate returns than fundamental analysis may have.

*as calculated by a proprietary model

Source: Delaware Investments research

Investment philosophy: Real estate is a spread business...
Distinguishing characteristics / Funds we manage

Distinguishing characteristics

  • Disciplined and consistent investment process focuses on quality of free cash flow, balance sheet structure, and management strategy, as well as on portfolio risk control
  • Portfolio team dedicated to one style of investing in real estate equities designed to seek consistent long-term returns over market cycles
  • Unique dual bottom-up approach (property and security analysis) closely monitoring credit markets

Learn more about the Funds we manage:

Fund Load waived
With load
Delaware Dividend Income Fund1
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3 stars
3 stars
Delaware Global Real Estate Opportunities Fund
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Delaware REIT Fund2
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3 stars
3 stars

1,2 (View Morningstar disclosure)

Investment philosophy: REITs' implied long-term growth
Video: Art vs Science

Carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Fund’s prospectus and its summary prospectus, which may be obtained by visiting our fund literature page or calling 800 523-1918. Investors should read the prospectus and the summary prospectus carefully before investing.

Investing involves risk, including the possible loss of principal.

IMPORTANT RISK CONSIDERATIONS

Fixed income securities can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder a issuer’s ability to make interest and principal payments on its debt.

The Fund may also be subject to prepayment risk, the risk that the principal of a fixed income security that is held by the Fund may be prepaid prior to maturity, potentially forcing the Fund to reinvest that money at a lower interest rate.

Narrowly focused investments may exhibit higher volatility than investments in multiple industry sectors.

REIT investments are subject to many of the risks associated with direct real estate ownership, including changes in economic conditions, credit risk, and interest rate fluctuations. A REIT fund’s tax status as a regulated investment company could be jeopardized if it holds real estate directly, as a result of defaults, or receives rental income from real estate holdings.

“Nondiversified” funds may allocate more of their net assets to investments in single securities than “diversified” Funds. Resulting adverse effects may subject these Funds to greater risks and volatility.

International investments entail risks not ordinarily associated with U.S. investments including fluctuation in currency values, differences in accounting principles, or economic or political instability in other nations.

A bottom-up approach to investing primarily considers factors affecting individual companies and secondarily focuses on industries and economic trends.

Not FDIC Insured | No Bank Guarantee | May Lose Value