Navigating Market Dynamics: A Global Real Estate Perspective

Fund's Performance in Q4 2025

In the final quarter of 2025, the Invesco Global Real Estate Fund, despite facing a challenging market, recorded a negative absolute return. However, it successfully surpassed its designated benchmark, demonstrating resilience amidst fluctuating economic conditions.

Regional Performance Highlights

The fund's superior relative performance was significantly bolstered by strong outcomes observed across North America. This region's real estate market proved to be a key driver, contributing positively to the fund's overall standing.

Future Outlook for Global Real Estate

The fund's management maintains a cautiously optimistic perspective on the global listed real estate sector. This outlook is largely predicated on the expectation of continued accommodative monetary policies, which are anticipated to support the market's stability and growth.

Opportunities for US REITs

Specifically, US Real Estate Investment Trusts (REITs) are identified as potential beneficiaries of evolving economic trends. Moderating inflation coupled with anticipated interest rate reductions could create favorable conditions, historically known to improve financing options and facilitate capital deployment within the sector.

Managerial Insight and Market Conditions

During the quarter, global macroeconomic conditions were characterized by efforts towards monetary easing. Despite these measures, inflationary pressures continued to be a notable factor across major economies. The US Federal Reserve's decision to lower the federal funds rate in October was a direct response to these prevailing conditions.