We are live since 1 year with our Global Balanced and Global Conviction REITs Indices and they have performed very well in line with our expectations and backtests.
- Since its launch 1 year ago, our Global Balanced Index outperformed its benchmark with a significant risk reduction;
- The Global Conviction Index slightly underperformed since its launch last year, but did so at a much lower volatility.
- Since its launch 3 months ago, the Global Sustainable Index outperforms the market somewhat (36bp vs. 18bp) at significantly lower volatility (6.59% vs 8.03%). The underlying GRESB sustainability database has been updated in September and we welcome more than 50 new REITS that are now eligible for the sustainable index going forward.
- In line with our low risk philosophy, all of our indices outperformed during the difficult month of September: Benchmark -2.55%, all Reitsmarket Indices did at least 1% better.
- Looking ahead at our current selection:
- We are currently positioned towards diversified REITS, no specific sector skews at the moment;
- The Conviction Index is skewed towards Canada (favouring low risk factors);
- The Sustainable Index is skewed towards Asia Pacific (favouring high profitability factors).