The Tuckerman Group, a real estate investment management and advisory firm and member of State Street Global Alliance, LLC, announced that the SSgA/Tuckerman Liquid 40 Real Estate Securities Index Strategy has exceeded US$1 billion in assets under management (as of July 31, 2005).
The objective of the strategy is to provide institutional investors with a liquid and diversified passive exposure to the European real estate securities market. The strategy replicates the returns of the EPRA Liquid 40 Index, a customised index created by Tuckerman and the European Public Real Estate Association (EPRA) that includes the 40 most liquid European real estate securities. The EPRA Liquid 40 Index mirrors the 25% annualised performance of the EPRA Europe Index.
“We’re excited to reach this important milestone for our Liquid 40 European Real Estate Index Strategy in just three years since its inception, which illustrates that investors are choosing real estate over other asset classes,” said Chip Lauckhardt, chairman and chief executive officer of The Tuckerman Group. “In a highly competitive market in which many active managers are underperforming, returns on real estate investments, particularly in Europe and Asia, have been solid.”
Tuckerman’s customised index methodology selects the 40 most liquid securities based on trading volume and float-adjusted market capitalisation. Historically, the Liquid 40 index has maintained a close correlation (0.992) to the broader universe of European real estate securities.
“We developed a unique and customised liquid index to offset a relatively illiquid European market for real estate securities,” said Matthew Pace, a product engineer with The Tuckerman Group. “By choosing a collection of the most liquid real estate securities from the EPRA Europe Index, we are able to maintain the geographic and property sector diversification included in the broader EPRA European index.”