The Index uses proprietary criteria to select a portfolio of US real estate investment trusts (REITs) designed to outperform market benchmarks by eliminating the riskiest REITs on the basis of leverage, valuation, margin and yield. The Index is owned, licensed, administered and marketed by Barclays Bank PLC.
Colony Capital Fundamental US Real Estate Index draws on Colony Capital’s expertise in global real estate investing experience coupled with Barclays’ market leading strengths in the structuring, trading and distribution of indices. The Index aims to invest in a dynamic and diversified portfolio of US listed Real Estate Investment Trusts (“REITs”), selected using liquidity, market cap and fundamental investment criteria.
Colony Capital Fundamental US Real Estate Index Total Return
Differentiated Fundamental Approach
The Index aims to outperform REIT market benchmarks by avoiding REITs with high leverage, expensive valuations, low margins and high yields.
Emphasis on quality over value
Higher margins can signal higher quality and provide a margin of safety in periods of stress
Conservative financing is preferred
Higher leverage can increase risk without increasing returns
REITs have valuation limits
High valuation multiples can lead to underperformance
High dividends may signal high risk
As in credit, higher yields often signal lower quality assets
As of the last rebalance date in August 2019, the Index selected 63 REITs with $749 billion market cap out of the sub-universe of 130 REITs with $1.19 trillion market cap.
Partnership with Barclays
Colony Capital and Barclays have partnered to create the Colony Capital Fundamental US Real Estate Index. Barclays Bank PLC owns the index and licensing rights related to the Index. Barclays Index Administration, a distinct function within the investment bank of Barclays Bank PLC, performs the role of index sponsor and administers the Index.
For inquiries about the Index,
visit Barclays directly at:
Partnership with DoubleLine®
DoubleLine Capital has a nonexclusive license for the Colony Capital Fundamental US Real Estate Index from Barclays for use in its affiliate funds.
The Colony Capital Fundamental US Real Estate Index (the “Index”) has been licensed by Barclays. Colony Capital is a registered trademark of Colony Capital QIS, LLC or its affiliates. Any investment product that utilizes the Index is not sponsored, endorsed, sold, or promoted by Colony Capital QIS, LLC or any of its affiliates. Neither Colony Capital QIS, LLC nor any of its affiliates make any representation or warranty, express or implied, to the owners of any investment product that utilizes the Index or any member of the public regarding the advisability of investing in securities generally or in any particular investment product or the ability of the Index to track market performance. Colony Capital QIS, LLC’s and its affiliates’ only relationship to any investment product that utilizes the Index is through the sublicensing of certain rules incorporated in the Index and certain trademarks, service marks, and/or trade names owned by Colony Capital QIS, LLC or its affiliates. The Index is not determined, composed, or calculated by Colony Capital QIS, LLC or its affiliates. Colony Capital QIS, LLC and its affiliates have no obligation or liability in connection with the administration, marketing, or trading of any investment product that utilizes the Index. There is no assurance that investment products based on the Index shall accurately track index performance or provide positive investment returns. Colony Capital QIS, LLC and its affiliates are not investment advisors with respect to investors in any investment product that utilizes the Index. Inclusion of a security within an index is not a recommendation by Colony Capital QIS, LLC or its affiliates to buy, sell, or hold such security, nor is it considered to be investment advice.
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