About Alesco Global Advisors

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Investment Process

The portfolio team utilizes Grubb & Ellis' 1,600 commercial real estate brokers located throughout 130 owned and affiliate offices across the country, as well as Grubb & Ellis national research team to identify key investment trends in real estate securities and sectors in the context of broad macroeconomic conditions. Combining these resources with the fund managers' expertise and deep, longstanding relationships in the industry, the team attempts to uncover real estate companies and securities that are poised to benefit from these trends.

Focused. Research Intense.
Our process is both qualitative and quantitative and includes a stringent evaluation of many critical components that affect both the real estate marketplace and the companies within the industry.

Understanding The Economic Environment: Top-Down
We begin with an in-depth analysis of the structural and cyclical trends impacting the economy, real estate industry and real estate sectors. This essential backdrop helps us identify trends we believe will influence real estate values from a global, regional and specific geographical perspective.

Understanding The Companies: Bottom-Up
Within each major commercial property type, individual companies endure rigorous analysis to ensure that they meet the appropriate risk-reward characteristics for each of our mutual funds. Qualitatively and quantitatively, we scrutinize a significant array of financial measures. We often tour a company's properties to gain an in-depth understanding of its management and financial standing.

The team evaluates the universe of global real estate securities. In the US, this includes more than 300 companies totaling approximately $315 billion in equity market capitalization across multiple sectors. For the international candidates, the team reviews securities available from the 22 countries that have a REIT structure in place.

The Funds have the ability to invest in the following:

Buy Discipline

Price targets are established for every security in the portfolio, with added emphasis on dividend and principal safety. Individual companies are then identified that the team believes will offer high dividend yields and/or dividends that will grow in excess of the rate of inflation over the long term, as well as companies they believe have the potential to provide capital appreciation. This approach is research-intensive and grounded in analysis of the issuing company's fundamentals. Financial characteristics are evaluated, including a company's profitability, debt, available cash on hand, return on equity**, and amount of assets and investments.

These securities are further analyzed for price to underlying real estate value, earnings growth, earnings multiples, dividend safety and the prospects for dividend growth. Additionally, the team takes into account key real estate data in the markets the companies are active in, as well as their knowledge of and/or past experience with the management teams.

Sell Discipline

Price targets are set for each security in the portfolio. When these targets are reached, the security is analyzed to determine whether to reduce or close the position. Additionally, when a security declines significantly from its original purchase price, it is re-evaluated for fundamental changes and perceived value, and can be reduced or closed if these changes are materially negative. Each security is also evaluated for credit spread widening, default risk, and potential rating agency downgrades. A security can be sold when one or more of these risks appear likely.

To seek to control risk, the funds are diversified, which means that with respect to at least 75 percent of its total net assets, the funds may not invest greater than five percent of total net assets in any one issuer and may not hold greater than ten percent of the securities of any one issuer.

Mutual fund investing involves risk, including the potential loss of principal.

Investors should be aware of the risks involved with investing in a fund concentrating in REITs and real estate securities, such as declines in the value of real estate and increased susceptibility to adverse economic or regulatory developments. Investments in asset backed and mortgage backed securities include additional risks that investors should be aware of, such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. Investing in small and medium-sized companies involves greater risks than those associated with investing in large company stocks, such as business risk, significant stock price fluctuations and illiquidity. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Diversification does not assure a profit or protect against a loss in a declining market.

The funds may invest in foreign securities which involves greater volatility and political, economic and currency risks and differences in accounting methods.

*Cash flow measures the cash generating capability of a company by adding non-cash charges (e.g. depreciation) and interest expense to pretax income.

**A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Grubb & Ellis AGA Mutual Funds are distributed by Quasar Distributors, LLC.