FTSE Group (FTSE), the global index provider, today takes over calculation of a specialist real estate index series for institutional investors, the EPRA/NAREIT Global Real Estate Indices, which will be renamed the FTSE EPRA/NAREIT Global Real Estate Index Series.
Designed to track the performance of listed real estate companies and REITs worldwide, the series acts as a performance measure of the overall market and is also suitable for use as the basis for investment products, such as derivatives and Exchange Traded Funds (ETFs).
The FTSE EPRA NAREIT Global Real Estate Index Series is broken down into three index families, covering Asia Pacific, Europe and North America. It contains a total of 37 indices, including twelve real-time indices covering the worldâs largest investment markets.
With over â¬500 billion assets under management in real estate portfolios globally, the demand for indices covering this alternative asset class is growing rapidly. The FTSE EPRA/NAREIT index series is already used as the basis of a successful ETF by AXA (easyETF EPRA Eurozone) with more index-linked investment products in the pipeline.
Mark Makepeace, Chief Executive FTSE Group said, 'The real estate sector is now an important asset class. We are delighted to be able to work with EPRA and NAREIT, the industry trade bodies, to offer a global set of real estate indices as part of the FTSE suite of indices to our clients.'
Nick van Ommen, Chief Executive, EPRA, comments, âThe transition of the indices onto the FTSE global platform adds a further degree of professionalism to the global real estate sector. The index series has grown significantly in stature since the launch in 2000 and is commonly viewed as the benchmark of choice for the industry.â
âREITs and publicly traded real estate companies increasingly are delivering diversification, dividends, liquidity, performance and transparency to investors worldwide,â according to NAREIT President and CEO Steven A. Wechsler. âThe global index, now calculated by FTSE, is an important tool designed to help todayâs investors â" and those of tomorrow â" more easily track the industryâs impressive returns and phenomenal growth.â