Micro Cap Commentary

Important Information

1. Uniplan Investment Counsel, Inc. (“Uniplan”) is a boutique investment firm, with roots dating back to 1984, that manages a variety of portfolios primarily for US clients.

2. The REIT composite was created January 1, 1989. The Micro Cap composite was created August 1, 1999. The HITR K1 composite was created January 1, 2001. The HITR Non-K1 composite was created March 1, 2005. Performance is calculated in US dollars utilizing a time-weighted total rate of return. Total return for the composite is represented by the asset-weighted returns of the portfolios within the composite. Trade-date valuation is used.

3. Investors should understand and review all performance periods, listed on this website, prior to making an investment decision.

4. Gross Performance is net of all transaction costs and Net Performance is net of transaction costs and (maximum allowable total) investment management fee, but before any custodial fees (that may be incurred separately by the client).

5. Benchmarks:
The benchmark for the REIT composite is the Primary Benchmark Index (REIT). Primary Benchmark Index – The Index was the FTSE NAREIT All Equity REITs Index until 12/31/2023. Thereafter, a custom benchmark that uses the 150 largest market capitalization companies. In creating a custom benchmark Uniplan applies a screening tool utilizing a KPI REIT universe. From there, Uniplan uses the 150 largest market capitalization companies. Basic exclusions from this universe include Commercial Real estate services & brokerage, real estate investment & services, and all Mortgage REITs. Uniplan reserves the right to remove a company from the custom benchmark for any or no reason at all. The Primary Benchmark is rebalanced quarterly and includes the reinvestment of dividends.

The benchmark for the Micro Cap composite is the Wilshire US Micro Cap Index that represents a float-adjusted, market capitalization-weighted portfolio of all stocks below the 2,500th rank by market capitalization in the Wilshire 5000 at March 31 and September 30 of each year. The index is used to measure small stocks and is adjusted to reflect the reinvestment of dividends, when applicable. The Micro Cap strategy principally invests in Micro Cap stocks, including those companies that show growth. Uniplan typically views companies, at time of investment, to be considered a micro capitalization company if the market capitalization falls below the larger of $750 million.

The benchmark for the HITR K1 composite is the Primary Benchmark Index (HITR). Primary Benchmark Index - The Index was the Russell 1000 until 12/31/2023. Thereafter, the Index is the Standard & Poor’s 500 Index (S&P 500). The S&P 500 is a market-capitalization-weighted index of the 500 largest U.S. publicly traded companies. The Russell 1000 Index that measures the performance of the 1,000 largest companies in the Russell 3000 Index. The Russell 3000 Index represents approximately 98% of the investable US equity market.
Historically, the High Income Total Return (HITR) strategy has been offered with a K1 and Non K1 portfolio option. These two options are now managed the same; thus, each portfolio now has the same securities. Historical performance for the HITR No K1 strategy is available upon request.

It is not possible to invest directly in an index. The index figures do not reflect any deduction for fees, expenses or taxes.

6. The dispersion of annual returns is measured by the standard deviation of asset-weighted portfolio returns represented within the composite for the full year.

7. The composite does not have a minimum size criterion for composite membership. All fee-paying discretionary accounts with similar investment objectives are included. Leverage is not used in these composites as a means to generate higher returns. There may be non-fee paying portfolios in the composite. Individual account holdings may vary depending on numerous factors including the size of an account, cash flows, and account restrictions.

8. There have been no changes in the personnel responsible for the management of this composite.

9. The composite contains both traditional and wrap fee portfolios. Uniplan has a flexible and negotiable fee schedule reflecting the differences in size, composition and servicing needs of clients’ accounts. A complete description of investment advisory fees is contained in Uniplan’s Form ADV and is available upon request by contacting us at (262) 534-3000.

10. Uniplan is an independent investment adviser registered under the Investment Advisers Act of 1940, as amended. Registration does not imply a certain level of skill or training. More information about Uniplan including our investment strategies, fees and objectives can be found in our ADV Part 2 which is available upon request.

11. Uniplan does not claim GIPS compliance. The performance has been verified by an independent source as of 1/01/2011 – 12/31/2023. A complete description of investment advisory fees is contained in Uniplan’s Form ADV and is available upon request.

12. Individual account performance may vary from the results shown because of differences in inception date, restrictions and other factors.

13. Investing in securities entails risks, including: Real Estate Investment Trusts, REITs and the portfolios that invest in them are subject to risk, such as poor performance by the manager of the REIT, adverse changes to the tax laws or failure by the REIT to qualify for tax-free pass-through of income under the Code. In addition, some REITs have limited diversification because they invest in a limited number of properties, a narrow geographic area, or a single type of property. Also, the organizational documents of a REIT may contain provisions that make changes in control of the REIT difficult and time-consuming. The value of real estate and the portfolios that invest in real estate may fluctuate due to losses from casualty or condemnation, changes in local and general economic conditions, environmental conditions, supply and demand, interest rates, property tax rates, regulatory limitations on rents, zoning laws and operating expenses.

14. Investors should understand that micro cap and small cap stocks are subject to a higher degree of risk than other equity investments due to the small size of the companies and the limited trading volume inherent in micro cap stocks.

15. For securities in the High Income Total Return (HITR) portfolio, there are no guarantees that dividend-paying stocks will continue to pay dividends. Dividends are paid only when declared by an issuer’s board of directors, and the amount of any dividend may vary over time. Dividend yield is one component of performance and should not be the only consideration for investment. In addition, dividend-paying stocks may not experience the same capital appreciation potential as non-dividend-paying stocks. Diversification does not assure a profit nor protect against loss. Additionally, International investing involves special risks including currency risk, increased volatility, political risks, and differences in auditing and other financial standards. The HITR portfolio may own ADRs on occasion, as such International investing involves special risks including currency risk, increased volatility, political risks, and differences in auditing and other financial standards.

16. This information is not an offer to buy or sell a security nor does it constitute investment advice or an offer to provide investment advisory or other services.

17. Strategies and separately managed account programs may not be suitable or appropriate for all investors.

Past performance is no guarantee of future results. Investment involves a risk of loss.

All information placed on Uniplan’s website is for informational purposes only. This information is not an offer to buy or sell a security nor does it constitute investment advice or an offer to provide investment advisory or other services. All information is subject to correction or change.