Cohen & Steers Implements Changes for Realty Indexes to Enhance Market Insights

Changes to Realty Indexes by Cohen & Steers

Cohen & Steers, Inc. (NYSE: CNS) has revealed a series of adjustments to its Global Realty Majors Portfolio Index (GRM) and International Realty Majors Portfolio Index (IRP) as they aim to optimize market insights. Effective from February 21, 2025, these updates will impact how these indexes reflect the real estate sector on a global scale.

Details of the Changes

The GRM will add Hongkong Land Holdings Ltd. (HKL.SP) while removing CK Asset Holdings Ltd. (1113.HK). The same adjustments apply to the IRP, indicating a strategic shift in the underlying assets that these indexes track. This modification reflects Cohen & Steers’ commitment to ensuring that its indexes include companies at the forefront of real estate securitization globally.

Understanding the Indexes

The Cohen & Steers’ GRM and IRP are designed as free-float adjusted, modified market capitalization-weighted total return indexes. They are calculated and quoted intraday by the Chicago Mercantile Exchange. This method ensures a more accurate depiction of market performance based on the companies included in the indexes. The firm uses a qualitative screening process to emphasize the companies it deems leaders in the sector.

These indexes serve multiple purposes; they can act as benchmarks for indexing, stock selection universes, underlying indexes for various derivative instruments, and performance benchmarks. Furthermore, Standard & Poor’s independently calculates all index weightings, adding an extra layer of reliability to these financial tools.

Broader Context

Cohen & Steers was established in 1986, gaining a reputation as a leading global investment manager that specializes in real assets and alternative income solutions. The firm is headquartered in New York City, with a notable international presence across London, Dublin, Hong Kong, Tokyo, and Singapore. Its investment strategies also cover listed and private real estate, infrastructure, and resource equities, among other areas.

By making these notable changes to their realty indexes, Cohen & Steers is positioning itself to navigate the evolving landscape of the real estate market dynamically. Their real estate indices will continue to highlight companies that are expected to play critical roles in the global securitization of real estate, ultimately providing better investment insight for both current and prospective clients.

For more information about these changes, visit Cohen & Steers.