Global property research

Business Case

Global Property Research now calculates two Fundamental Indexation® index products.

Wednesday 9 March 2011

Global Property Research (GPR) announces the launch of the GPR Global Property Fundamental Index® as well as the renaming of the GPR Smart Real Estate Index, both customized index products created and maintained by GPR on behalf of Kempen Capital Management (KCM).

The GPR Global Property Fundamental Index® is constructed on a total return basis, where dividends are calculated net of withholding taxes. Most importantly, the index product uses specific fundamental metrics (representing the economic size of a company) rather than (free float) market capitalization to calculate constituents’ weights at the yearly rebalancing. After rebalancing, constituent weights are determined by their respective total return performance.

Characteristics of the GPR Global Property Fundamental Index®:

  • The GPR Global Property Fundamental Index® is based on the GPR 250 Index universe;
  • The GPR Global Property Fundamental Index® includes 150 property stocks with the largest fundamental value within the universe at the rebalance date;
  • The index is available on a daily basis with three layers of aggregation: continental, country and constituent;
  • The index is calculated in euro and in local currency and has an inception date of 9 March 2011;
  • Changes in the selection and base weighting of countries or in the selection of stocks will be implemented once a year.

Based on this customized index product, KCM manages a fund, the Kempen (Lux) Global Property Fundamental Index® Fund.

Additionally, KCM decided to rebrand the European predecessor of the GPR Global Property Fundamental Index® to align it with its global counterpart. As such, GPR changed the name of the underlying index product from GPR Smart Real Estate Index to GPR European Property Fundamental Index® as per 1 September 2011. For the avoidance of doubt, this is a name change only. The content, calculation and components of the index will not change as a result of the rebranding, and the index will continue to be calculated in accordance with its rules and methodology.

The development of the GPR European Property Fundamental Index® and GPR Global Property Fundamental Index® once again shows the dedication and specialization of Global Property Research in the provision of standard and customized benchmarks for the listed property sector.

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