Guiding a UK-based private bank in building and running proprietary indices in real estate subsectors
Market Assessment | Index Preparation | Performance Tracking
- A UK-based private bank focused on alternative assets, including real estate, wanted to assess, track and benchmark the performance of real estate sub-sectors with its investment returns on an ongoing basis.
- It engaged RocSearch to help understand the market, drive insights on market performance and make informed decisions.
To create proprietary indices focused on the UK’s real estate market.
The client outlined two key reasons for selecting RocSearch:
- Our unique investment research and advisory capabilities.
- Our experience and understanding of the real estate sector.
Approach and Methodology
- Our strategic research and advisory team understood the client’s decision context and strategic requirements and focused on various sub-sectors such as retail, data centres, self-storage, hotel and property. We also brainstormed and proposed to build and maintain a market-cap-weighted sub-sector index to assess, track and benchmark performance.
RocSearch created a comprehensive market-cap-weighted sub-sector index and identified real estate investment trusts (REITs) for each subsector, in addition to building a dynamic dashboard and implementing a system to update the indices regularly.
- We identified relevant companies/REITs in each sub-sector for analysis. Moreover, we developed customised indices and back-tested data analysis with the client to get inputs and to ensure better alignment with the end goal.
- Further, we 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.
- The study provided the client with details on the UK’s real estate sub-sector performance.
- It also enabled the client to focus on driving insights and strategy by providing foundational content and data.
- The client’s customers used and quoted the indices in their pitchbooks and investor presentations.
The study helped the client drive its strategy and enabled its customers to use indices in their pitchbook presentations.