REITS: The Real Real Estate Factors
“Institutional investors are well aware of the benefits and characteristics of listed real estate including academic and industry research that clearly demonstrates that listed real estate equities follow the longer real estate cycle rather than the shorter business cycle. However, it seems as this important aspect is overlooked when it comes to factor-based investing and there is an assumption that general equity market factors, the one-size-fits-all approach, is the only correct way to structure factor-based processes. We believe that some sectors, like listed real estate, are sufficiently different fundamentally to make general equity market factors potentially inconsistent with the asset class and sub-optimal to capitalize on systematic sources of returns in those sectors.
At the same time this also raises the bar for active managers in the sector who pursue quantamental integration as the typical approach is to implement analytics based on general equity market factors.” comments Witold Witkiewicz, Founder of Kania Advisors.
Kania Global Real Estate CAI Index, is an alternative beta index based on factors specifically relevant to real estate and real estate securities markets. The index was launched live as of 31 Dec 2016 and rebalances semi-annually.
Kania Advisors provides underlying factor data used to construct the index that can be integrated into an active process as part of a quantamental solution. For information about the benefits of integrating our quantitative analytics and solutions with your firm’s fundamental process, see REITS: How Fundamental Management Can Benefit From Factors
For information about our services, please contact info@kaniaadvisors.com
About Kania Advisors
Kania Advisors is an independent research and advisory firm focused exclusively on institutional real assets allocations and investment programmes. We provide advice and solutions to improve outcomes in real assets investment programmes. We conduct detailed industry research and custom studies typically focused on quantitative analysis and provide insights which form a critical part of a client's decision process.