Colony Capital has launched the Colony Capital Fundamental US Real Estate Index, a rules-based (smart-beta) strategy that invests in the common stocks of real estate investment trusts (REITs).
Colony Capital has partnered with Barclays Bank PLC to structure the Index and Barclays Index Administration performs the role of index sponsor, owner and administrator.
Bill Hughes, Portfolio Manager and Head of Liquid Strategies, Colony Capital, said, “The Index offers investors a differentiated approach to investing in liquid real estate securities, based on Colony’s core investing tenet—quality real estate assets, financed conservatively, will outperform over time.”
Additionally, the company announced that it has launched the DoubleLine Colony Real Estate and Income Fund in the fourth quarter 2018.
The Fund is an open-end mutual fund that provides exposure to the Colony Capital Fundamental US Real Estate Index, and invests in a fixed income portfolio managed by DoubleLine Capital. The Fund seeks total return (capital appreciation and current income) in excess of its benchmark, the Dow Jones U.S. Select REIT Index, over a full market cycle.
Mr. Hughes added, “We are excited to be able to align with a world class investment management firm like DoubleLine Capitaland to be a part of Barclays’ industry-leading index platform.”