Build real estate opportunities beyond your home with this specialty diversifier. The First American Real Estate Securities Fund offers a long-term track record and can potentially help to improve portfolio returns while lowering risk.
First American Funds, Class Y, for the period ended 6/30/2010 For funds with at least a three-year history, a Morningstar Rating™ is based on a risk-adjusted return measure (including the effects of sales charges, loads, and redemption fees) with emphasis on downward variations and consistent performance. The Morningstar Overall Rating™ for a fund is derived from a weighted average of the fund’s three-, five-, and 10-year (if applicable) risk-adjusted return measures and Morningstar Ratings metrics.
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Past performance does not guarantee future results.
These ratings are for Class Y shares only; other classes may have different performance characteristics.
Innovative specialty diversifier
Adding just 10% of real estate to a portfolio of U.S. stocks led to higher returns with lower risk, as the hypothetical chart below illustrates.
Specialty Diversifiers Have Helped Achieve
Higher Total Portfolio Returns
Hypothetical Portfolio Returns with Real Estate Diversifier (10 years - ended 6/30/2010)
Source: Morningstar Direct
The returns and risk in this chart represent the past performance of the indices and should not be viewed as a guarantee of future index or investment performance. The portfolios in the chart are rebalanced monthly. The chart is designed to illustrate the potential benefit of allocating a portion of your portfolio to real estate. Percents selected are for illustrative purposes only; amounts appropriate for individual clients should be based on individual needs. It does not represent the past performance of the First American Real Estate Securities Fund, which may be found by clicking here.
Index Returns and Standard Deviation for the 10 years ended June 30, 2010. Real estate is represented by the MSCI U.S. REIT Index, which tracks the performance of real estate investment trusts, (returns: 9.67%; standard deviation: 25.60). Large-cap stocks are represented by the S&P 500 Index, which tracks the performance of 500 U.S. large company stocks, (returns: -1.59%; standard deviation: 16.16).
Market indices do not include fees. You cannot invest directly in an index.
Standard Deviation: A statistical measure of portfolio risk used to measure variability of total return around an average, over a specified period of time.
