The new sustainable global real estate index of La Française & GPR
16 October 2017
We have devoted a significant amount of time to the analysis of sustainability within the real estate sector.
It was not necessarily our primary goal to create a sustainable index. However, as our works progressed and our ambitions rose, we decided that we want to set the standard of sustainability within global listed real estate sector. Given our long-standing relationship with GPR and GPR’s interest to be also an innovator in the index field, we joined forces to produce the first sustainable global real estate index.
The index is capped at 150 constituents. It includes the best in class companies based on their ESG ranking and free-float adjusted market cap. GPR uses it eligibility criteria to screen out names that may not meet the criteria for inclusion. IPCM produces up-to-date ESG scores. La Francaise Forum Securities is in frequent touch with corporate management and helps source additional, very important qualitative input for our models. It is an important addition to the listed real estate securities industry and an important step forward in its development.
It was our general expectation that a sustainable strategy would be more suitable for institutional clients with a sustainable mind-set or policy in place. However, to our positive surprise, we are also finding good reception to the topic within private banks, where today’s younger generations are looking to explore products beyond the general asset allocation model. This means they are looking for products with more than just a financial appeal to meet their needs and aspirations. We are more than happy to play a role here and help satisfy growing client demand.