Case Study
Construction and maintenance of proprietary indices focused on the UK real estate market
About the Client
A UK-based private bank that invests in alternative assets, including real estate
Business Need
- The client wanted to assess, track and benchmark the performance of real estate sub-sectors with its investment returns, on an ongoing basis
Approach and Methodology
- Understood client’s decision context, strategic requirements and sub-sector focus – retail, data centres, self storage, hotel and property
- Brainstormed and proposed to build and maintain a market-cap weighted sub-sector index to assess, track and benchmark performance
- Identified relevant companies / REITs in each sub-sector for the purpose of analysis.
- Developed customised indices and back-tested data analysis with the client to receive their inputs, and to ensure better alignment with the end goal
- Prepared a dynamic dashboard to view and benchmark performance; and implemented a mechanism to periodically update the indices and provide qualitative insights to substantiate any major changes
Business Outcomes
- Enabled the client to focus on driving insights and strategy by providing the foundational content and data
- The indices were used and quoted by the client’s customers in their pitch books and investor presentations
