VNQ - AWP: 13% Yield Contrarian Play But There Are Better Choices

2024-05-05 09:00:00 ET

Summary

• Abrdn Global Premier Properties Fund is a closed-end fund that invests in real estate companies and REITs.
• AWP is a global fund, and invests both in the U.S. and international markets.
• We compare AWP's record with other real-estate CEFs and funds. Even though AWP’s yield is very tempting, it may not be sustainable. In fact, there are a few other real-estate funds that could be better choices.

Introduction:

Abrdn Global Premier Properties Fund ( AWP ) is a closed-end fund that was incepted in April 2007. However, the Abrdn group took over the fund in May 2018. The fund's main objective is to provide high current income to its shareholders. Capital appreciation is the secondary objective. The fund's mandate requires it to invest at least 80% of the total assets in real-estate companies or REITs or even the companies that provide financing to real-estate companies. The fund is global in nature and invests all over the world. That said, it has over 60% of investments in the US market, with Japan and Australia coming in second and third place. Other countries in which it is invested are Mexico, the U.K., Singapore, Germany, France, Canada, Hongkong, and a few others. It is nearly 99% invested in the equity of real-estate companies, though its mandate allows it to invest up to 20% in debt securities....

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