Alpine Global Premier Properties Fund (AWP) is a large closed-end fund, with almost one billion in assets trading on the New York Stock Exchange. It trades at an 11% discount from its net asset value, which is fairly narrow. Any purchases should be made when it sells closer to a 15% discount which is its truer range.
AWP invests in a broad range of real estate companies traded throughout the world. As of April 30, 2011, it's top five countries were:
- United States - 29.4%
- Brazil - 16.7
- Singapore - 10.1
- France - 5.6
- United Kingdom - 5.3
It was invested in the following top five sectors:
- Retail - 25.2%
- Residential - 19.0%
- Office - 17.0%
- Financials - 15.0%
- Lodging - 8.7%
Even with management expenses of 1.31% AWP was able to generate investment income of 3.72% on net assets of $ 956 million as of April 30, 2011.
Alpine Woods Capital Investors, the investment advisor, is experienced in this area and is doing a credible job. This is an area where every investor should have some money. It is not within my skill set to evaluate the quality of real estate investment available in Sweden (3.2% of assets), Thailand (2.4%) Turkey (3.5%) or Japan (4.7%), and I truly have no opinion. I am comfortable, though, in having some money in those places.
AWP offers an opportunity to allocate funds to another asset class, which would normally not be available to the average investor.
Again, let me reiterate, there is no rush in investing in AWP and the cautious investor should only wait for opportunities when the discount widens further.