Barclays launches Colony Capital Fundamental US Real Estate Index
Colony Capital Fundamental US Real Estate Index aims to provide access to a diversified portfolio of liquid, high quality Real Estate Investment Trusts (“REITs”)
New York, February 4, 2019 – Barclays has announced the launch of the Colony Capital Fundamental US Real Estate Index, designed with Colony Capital, Inc. (“Colony”), a global investment management firm.
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.
“We are very excited to be partnering with Colony to deliver an innovative, fundamentals-focused Index to our clients,” said Todd Sandoz, Head of Equities, Americas. “The Index draws on Colony’s 27 years of experience in managing global real estate investments coupled with Barclays’ market leading strengths in the structuring, trading and distribution of indices.”
“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.”
“Colony applies time-tested, fundamental real estate investing principles, with a focus on risk mitigation, to derive a differentiated REIT index,” said Bill Hughes, Portfolio Manager and Head of Liquid Strategies, Colony Capital. “We are excited to be partnering with Barclays, and their world-class index platform, to bring this innovative new investment strategy to market.”
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.
This communication has been prepared by Barclays. “Barclays” means any entity within the Barclays Group of companies, where “Barclays Group” means Barclays Bank PLC, Barclays PLC and any of their subsidiaries, affiliates, ultimate holding company and any subsidiaries or affiliates of such holding company.
BARCLAYS IS A FULL SERVICE INVESTMENT BANK. In the normal course of offering investment banking products and services to clients, Barclays may act in several capacities (including issuer, market maker and/or liquidity provider, underwriter, distributor, index sponsor, swap counterparty and calculation agent) simultaneously with respect to a product, giving rise to potential conflicts of interest which may impact the performance of a product.
Barclays may at any time acquire, hold or dispose of long or short positions (including hedging and trading positions) and trade or otherwise effect transactions for their own account or the account of their customers in the products referred to herein which may impact the performance of a product.
Barclays is not offering to sell or seeking offers to buy any product or enter into any transaction. Any offer or entry into any transaction requires Barclays’ subsequent formal agreement which will be subject to internal approvals and execution of binding transaction documents.
Neither Barclays nor any of its directors, officers, employees, representatives or agents, accepts any liability whatsoever for any direct, indirect or consequential losses (in contract, tort or otherwise) arising from the use of this communication or its contents or reliance on the information contained herein, except to the extent this would be prohibited by law or regulation.
Barclays is not responsible for information stated to be obtained or derived from third party sources or statistical services.
All opinions and estimates are given as of the date hereof and are subject to change. The value of any investment may also fluctuate as a result of market changes. Barclays is not obliged to inform the recipients of this communication of any change to such opinions or estimates.
Barclays offers premier investment banking products and services to its clients through Barclays Bank PLC. Barclays Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority and is a member of the London Stock Exchange. Barclays Bank PLC is registered in England No. 1026167 with its registered office at 1 Churchill Place, London E14 5HP. Barclays Capital Inc. is a US registered broker/dealer affiliate of Barclays Bank PLC and a member of SIPC, FINRA and NFA. Barclays Capital Inc. operates out of 745 Seventh Avenue, New York, NY 10019. Where required pursuant to applicable US laws, rules and/or regulations, Barclays Capital Inc. accepts responsibility for the distribution of this document in the United States to U.S. Persons. Where a communication is being directed at persons who are professionals, it is directed at institutional investors in the U.S. as defined by FINRA Rule 2210(a)(4).
Barclays is the licensor of the Colony Capital Fundamental US Real Estate Index (the “Index”). Colony Capital is a 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.
NEITHER COLONY CAPITAL QIS, LLC NOR ITS AFFILIATES GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS, AND/OR COMPLETENESS OF THE INDEX, ANY DATA RELATED THERETO, OR ANY COMMUNICATIONS, INCLUDING BUT NOT LIMITED TO, ORAL, WRITTEN, OR ELECTRONIC COMMUNICATIONS WITH RESPECT THERETO AND SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. COLONY CAPITAL QIS, LLC AND ITS AFFILIATES MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR USE, OR AS TO RESULTS TO BE OBTAINED BY ANY PARTICULAR INVESTMENT PRODUCT, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL COLONY CAPITAL QIS, LLC OR ITS AFFILIATES BE LIABLE, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE, FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES OR FOR LOSS OF PROFITS, TRADING LOSSES, LOST TIME, OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.