La Française & GPR launch new sustainable global real estate index
Pensions, other institutional investors as well as private banking clients are more and more integrating sustainability factors into their investment strategies. With one of the highest carbon footprints, the real estate sector is naturally the first place to look in order to curb climate change; and investors, increasingly aware of their responsibility, are embracing this challenge.
In this context, Global Property Research (GPR), a service provider for leading financial institutions, specializing in customized property indices, and real estate expert La Française are pleased to announce the launch of a new sustainable global real estate index designed for institutional investors: GPR IPCM LFFS Sustainable GRES Index, which will set new standards in terms of sustainability in the listed real estate sector.
La Française member companies, Inflection Point Capital Management UK Ltd. (IPCM) and La Française Forum Securities (LFFS), together with GPR will collaborate on the creation and maintenance of this new index consisting of up to 150 global sustainable real estate securities, selected based on their real estate activities, ESG performance and market capitalization. GPR compiles and administers the Index.
IPCM, the specialist, sustainability-focused investment advisory arm of La Française, uses its proprietary sustainability / ESG model to assess companies in terms of carbon intensity, materials use, water use efficiency, electricity use and energy efficiency, as well as health & safety, human capital management and overall governance. To generate the final IPCM ratings and achieve the best possible accuracy in rankings, IPCM synthesizes data, information, and insights from a variety of sources, including LFFS which will provide IPCM with ESG related company data, information and insights garnered from its research and interviews with management. GPR calculates index performance on the basis of its proprietary methodology on the universe of the top 150 ESG constituents with a quarterly review cycle.
Jeroen Vreeker, Head of the GPR Index Team, said:
“Sustainability is a factor that is increasingly implemented when providing benchmark solutions for listed real estate investments. The GPR IPCM LFFS Sustainable GRES Index covers over 60% of the total market capitalization of the broad GPR General Quoted Index and remains highly diversified to countries and sectors. The index is a valuable addition to GPR’s suite of tailor-made benchmarking solutions.”
Matthew Kiernan, CEO of IPCM, noted:
“All over the world, demand for more sustainable real estate offerings is growing exponentially. The leading, most far-sighted real estate companies have recognized this trend and are providing innovative solutions. This new index provides investors with a unique opportunity to identify the leading, best-managed companies and invest in their securities.”
Jana Sehnalova, Managing Director of LFFS, commented,
“The GPR IPCM LFFS Sustainable GRES Index sets a new industry standard for climate conscious investors in the listed real estate sector. Given the growth in tenant demand for green real estate and tightening government regulations, real estate securities with underlying holdings that have superior environmental characteristics and a strong focus on social and governance factors should outperform financially.”
Global Property Research (GPR) specializes in the creation of indices for the listed real estate and infrastructure sectors, available in various formats. GPR provides over 3,500 index series, focusing on creating solutions meeting the needs of (specialized) investors with specific mandates.
All index products use an extensive and unique proprietary database of global listed real estate companies. GPR has a proven track record since 1995. GPR offers its clients five standard benchmarks: GPR 250 Index, GPR 250 REIT Index, GPR General Index, GPR General Quoted Index and GPR Pure Infrastructure Index. All its indices are distributed via various data vendors.
GPR has an independent, dedicated and experienced Index Team with hands-on service for clients. Moreover, all index calculation procedures and maintenance processes are performed in-house. GPR complies with the IOSCO Principles for Financial Benchmarks to the extent these are proportional in relation to GPR’s benchmarks and benchmark-related activities. GPR is currently implementing the applicable provisions of the EU Benchmark Regulation (“BMR”), which is coming into effect as of 1 January 2018. GPR shall timely apply for authorization/registration as a benchmark administrator as defined in the BMR. In the meantime GPR qualifies for the BMR transitional provisions, as it already provided benchmarks on 30 June 2016.
For additional information on GPR, please visit www.globalpropertyresearch.com
Paris, France, September 19, 2017
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About La Française Group
For forty years, La Française has been developing core competencies in third party asset management.
La Française has a multi-expertise business model organized around four core activities: securities, real estate, investment solutions and direct financing. The group caters to institutional and private clients throughout the world.
With 639 professionals and offices in Paris, Frankfurt, Geneva, Hamburg, Stamford (CT, USA), Hong Kong, London, Luxembourg, Madrid, Milan, Seoul and Singapore, La Française manages €65.8bn in assets (as at 01/01/2019).
La Française is a forward-looking responsible investor and as such, incorporates tomorrow’s challenges into today’s investment strategy.
La Française is owned by Credit Mutuel Nord Europe (“CMNE”), a banking and insurance group present in Northern France and Belgium.