Barclays has launched the Colony Capital Fundamental U.S. Real Estate Index, designed with Colony Capital.
The central premise of the Index is that avoidance of risk is the primary driver of long-term outperformance in commercial real estate.
The Index is designed to eliminate the riskiest REITs by focusing on characteristics that Colony views to be reliable markers of risk and screening out REITs that exhibit these characteristics. Under its methodology, the Index selects at least 25 constituents, with the index rebalancing each quarter. The Index excludes mortgage REITs.
“There has been significant innovation in the smart beta space offering traditional equity factor exposure, but much less in the REITs segment,” said Fabien Labouret, global head of equities structuring. “This particular Index leverages Colony’s expertise and is designed to appeal to investors seeking high-quality REIT exposure.”
