Principal Real Estate Income Fund of Beneficial Interest
Find Ratings Reports- Last Ratings Update:02/29/2024
- Price as of 02/29/2024 :$10.07
- Net Assets:$65.72 Million
- NAV:$11.25
- Premium-10.49%
- Peer Rank:120 of 161
- Investment Rating:D+
- Performance:C
- RiskC
We rate Principal Real Estate Income at D+. Negative factors that influence this rating include a high expense structure. The fund may be considered for investors seeking a Growth & Income strategy.
Total return ranks above peers over the last three years. The Principal Real Estate Income has returned an annual rate of 2.98% since inception. More recently, the fund has generated a total return of -1.19% in the last five years, 3.29% in the last three years, and 9.26% in the last year. How does that compare to other equity funds? In the last five years, it has outperformed 10% of them. It has also outpaced 51% of its competitors on a three year basis and 46% of them over the last year for the period ending 2/29/2024. On a year to date basis, PGZ has returned 10.37%.
Downside risk has been above average. PGZ has a draw down risk of -44.97%, which is the largest price decline experienced over the last three years. This fund has a three year standard deviation of 21.7%. This fund has experienced a high level of volatility in its monthly performance over the last 36 months.
High expense ratio hinders performance. On total assets of $65.72 million, PGZ maintains a high expense ratio compared to its Growth & Income peers of 5.32% to cover all operating costs. Brokerage costs for the fund to buy and sell shares are not included in the expense ratio. As PGZ is a closed end fund, it has no front end or back end load.
Manager tenure is a net positive but performance record lags managerial peers. Substandard fund managers tend to be replaced, so a long tenure is usually a good sign that a fund is achieving its objectives. The Principal Real Estate Income has been managed by Kelly D. Rush for the last 11 years. Over that period, the manager was able to capture more actual gains in excess of the expected return than just 23% of other fund managers.