Alpine Premier Properties Fund is traded on the New York Stock Exchange under the symbol AWP. It was formed in 2007 and invests globally in Real Estate Investment Trusts or real estate operating companies. Its fiscal year ended October 31, 2011.
Performance has been below its indexes since inception but then its investment sector has not done well. Its performance profile looks as follows:
Net Asset Value
MSCI US REIT Index
S&P/Citigroup World Property Index
Top five country holdings are as follows:
As of October 31, 2011, it traded at a discount to net asset value of 13.15%. This discount has been above 155 as of late. This is a large and fairly liquid fund with net assets of $758,717,782 and is not leveraged. AWP does have the right to use leverage and does borrow money from time to time. This leverage is never major and in fact the most it has ever borrowed was $ 45,570,000 which is less than 10% of assets. It does have a line of credit with The Bank of New York for $350,000,000.
AWP does engage in currency hedging with respect to its foreign securities but it is not major. Last year they took a position to hedge a decline in the Euro by buying futures contracts to the extent of $42,991,420 and realized a gain of $118,316. I personally believe that part of foreign investing is currency risk and that you should simply live with it. AWP presently has a loss of $386,553 on its foreign currency holdings and that is acceptable as it is very minor compared to the size of its holdings.
As they have net losses since launching, AWP does have substantial tax losses, which look like this:
Accumulated Capital Loss
Net Unrealized Depreciation
The following are the per share ratios for last year. The fund did generate net income in excess of 4%:
Expenses to Net Assets
Expenses to Net Assets Excluding Interest
Net Investment Income
I like AWP even with its very mediocre tracking performance. I think everyone should have a small portion of their portfolio invested globally in real estate. This is especially true when the fund is at a substantial discount from net asset value. Management seems knowledgeable and I like their detailed reports.
I have written about AWP previously and my opinion has not changed. I fully believe that they will have their day in the sun.
Disclosure: I am long AWP.