NEW YORK, Dec. 19, 2012 /PRNewswire/ -- S&P Dow Jones Indices, the world's largest provider of financial market indices, announced today the launch of the Dow Jones Townsend Core U.S. REIT Index (the "Index") – which, designed in collaboration with The Townsend Group, aims to provide risk and return characteristics typical of direct core real estate investments through a basket of liquid publicly-traded REITs. The Index launch represents an expansion of the widely recognized Dow Jones Real Estate index family.
"The Dow Jones Townsend Core U.S. REIT Index is designed to serve as an investable proxy for privately-held core real estate investments," says Michael Orzano, associate director of global equity indices at S&P Dow Jones Indices. "The Index fulfills a need in the market for a representative measure of the characteristics of core property investments, constructed using liquid, publicly-traded REITs."
"We believe that this Index provides market participants with additional tools which can be used to better manage their existing portfolios," says Chris Lennon, Portfolio Manager at The Townsend Group.
The Index constituent companies are members of the Dow Jones U.S. Select REIT Index. The property types eligible for inclusion are limited to companies involved in activities that are focused on longer-term rent generation. Conversely, property types that tend to include shorter lease-term focused REITs, such as Factory Outlets, Hotels, Manufactured Homes, Mixed Industrial/Office and Suburban Office are excluded. A capping scheme is employed to enhance diversification and limit single stock concentration.For more information on the Dow Jones Real Estate indices, please visit: www.djindexes.com. For more information on S&P Dow Jones Indices, please visit: www.spdji.com. About S&P Dow Jones Indices S&P Dow Jones Indices LLC, a subsidiary of The McGraw-Hill Companies, Inc., is the world's largest, global resource for index-based concepts, data and research. Home to iconic financial market indicators, such as the S&P 500 SM and the Dow Jones Industrial Average SM, S&P Dow Jones Indices LLC has over 115 years of experience constructing innovative and transparent solutions that fulfill the needs of institutional and retail investors. More assets are invested in products based upon our indices than any other provider in the world. With over 830,000 indices covering a wide range of assets classes across the globe, S&P Dow Jones Indices LLC defines the way investors measure and trade the markets. To learn more about our company, please visit www.spdji.com. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"), a subsidiary of The McGraw-Hill Companies, Inc. Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"). These trademarks have been licensed to S&P Dow Jones Indices LLC. It is not possible to invest directly in an index. S&P Dow Jones Indices LLC, Dow Jones, S&P and their respective affiliates (collectively "S&P Dow Jones Indices") do not sponsor, endorse, sell, or promote any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. This document does not constitute an offer of services in jurisdictions where S&P Dow Jones Indices does not have the necessary licenses. S&P Dow Jones Indices receives compensation in connection with licensing its indices to third parties. SOURCE S&P Dow Jones Indices