Brussels, June 7, 2018 – Reitsmarket launches its new global sustainable REITs index.
After the successful launch of the Euronext® Reitsmarket Global Balanced Index and the Euronext® Reitsmarket Global Conviction Index in October last year, Reitsmarket now offers investors access to a sustainable alternative.
Both the existing Global and Conviction indices, launched in October last year, continue to build a superb track record. Performance since October is 3.62% and 2.03% respectively, above the 1.94% level for the benchmark. Annualized volatility levels at 9.1% and 9.7% respectively are substantially below the 11.2% level for the benchmark.
This year Reitsmarket started a cooperation with GRESB, the global sustainability benchmark and reporting standard for real assets. The Euronext® Reitsmarket GRESB Global Sustainable Index is the first index resulting from this new venture.
The ERGS index is designed to track specific factor trends in sustainable listed real estate worldwide. It is represented by 30 global real estate securities. The selection follows a factor ranking methodology applied to developed listed real estate markets of the world (North America, developed Europe and developed Asia Pacific). REITs have to belong to the Sustainable Investment Universe as determined by GRESB.
“We believe it is time to introduce to the market a liquid sustainable solution in the Global REITs market as we face more demand for ESG compliant solutions. We are very pleased to collaborate with GRESB and Euronext and launch this new innovative alternative for investors” said Benedict Peeters, CEO of Reitsmarket, explaining the advantages of the latest Reitsmarket index.
“As the leading global ESG benchmark for real assets, GRESB provides objective and standardized sustainability data to capital markets. In the listed real estate sector investors are using sustainability disclosures in their assessment of company and management quality. That is why we are delighted that Euronext and Reitsmarket are using GRESB ESG disclosure data as a fundamental quality factor in the new Euronext® Reitsmarket GRESB Global Sustainable Index. The index offers the opportunity to invest in a diversified pool of listed real estate companies that have been screened according to their level of sustainability disclosure,” says Sander Paul van Tongeren, co-founder and Managing Director at GRESB.
Euronext N.V. – the leading pan-European exchange in the Eurozone and a leading provider of index solutions – is the Administrator of the index and is responsible for its day-to-day management and dissemination.
The Euronext® Reitsmarket GRESB Global Sustainable Index is calculated as price return, net return and decrement indices and is denominated in euro without any currency hedge. The index will be rebalanced quarterly and will follow a risk-based weighting scheme.
Reitsmarket is a Luxembourg specialist boutique offering global quantitative and algorithmic REITs related research, specific REITs market advisory and smart indexation. Reitsmarket was founded by Rego Partners, a Belgium based financial boutique owned by Benedict Peeters and Christophe Pecoraro, two financial experts. Reitsmarket provides tailor-made financial research solutions and services for institutional clients within the global REITs market, generally designed with the purpose to add portfolio stability and the aim to enhance return over long-term periods.
GRESB, the global ESG benchmark for real assets, assesses the sustainability performance of real estate and infrastructure portfolios and assets worldwide. GRESB offers ESG data, Scorecards, Benchmark Reports and portfolio analysis tools. GRESB data and analytical tools are used by more than 70 institutional investors, including pension funds and insurance companies, collectively representing over USD 17 trillion in institutional capital, to enhance and protect shareholder value.
The Euronext® Reitsmarket GRESB Global Sustainable Index is administered by Euronext N.V. and the intellectual property of Rego Partners and its subsidiary Reitsmarket which has contracted Euronext N.V. to administer and calculate the Index. Euronext N.V. will use its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards Rego Partners, Euronext N.V. has no obligation to point out errors in the Index to third parties.
Index returns do not represent actual fund or portfolio returns. A fund or portfolio may differ significantly from the Index. The Index does not reflect any management fees, transaction fees, brokerage expenses, or other expenses that may reduce returns. Index returns may assume that dividends have been excluded. Investors cannot invest directly in the Index.
There are risks associated with investing, including the possible loss of principal.
For more information about the Index and the associated risks, we refer to the Index’ rulesbook.