This note summarizes current state of active profile in actively managed global real estate securities funds, as of Q4 2017. Active profile presented here relates to active share and the composition and distribution of total active share for the sector. 

Kania Advisors Global Real Estate CAI Index (CAI Index) outperformed ca 93% of comparable actively managed funds in 2017.

Active managers are increasingly considering possible complementary options which would result in a better value proposition and improved portfolio outcomes, as long as on balance those options do not change their fundamental process. Factors can be one such complementary option.

The first and most important property of constructing an investment portfolio is diversification. One such dimension of diversification that may be relevant to evaluate is the correlation of active positions relative to the benchmark against which an allocation is constructed.

This note summarizes key attributes of alpha generation in Kania Global Real Estate CAI Index (CAI Index) compared to its market-cap weighted benchmark in terms of accuracy and consistency.