Los Angeles—Colony Capital has launched the Colony Capital Fundamental US Real Estate Index, a smart-beta strategy that invests in REITs' common stocks. The company also announced that in the fourth quarter of 2018 it opened the DoubleLine Colony Real Estate and Income Fund.
The new index is a differentiated approach to investing in real estate securities, according to Bill Hughes, portfolio manager and head of Liquid Strategies at Colony Capital. He describes the strategy as based on the notion that “quality real estate assets, financed conservatively, will outperform over time.”
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.
The DoubleLine fund is an open-end mutual fund that provides exposure to the new index and invests in a fixed income portfolio managed by DoubleLine Capital. The fund seeks total return over its benchmark, the Dow Jones U.S. Select REIT Index, over a full market cycle.
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