Friday, May 09, 2008
ALPS Teams with Cohen & Steers for ETF
Armie Margaret Lee
and Cohen & Steers
have rolled out a global real estate ETF. The Cohen & Steers Global Realty Majors ETF
is advised by ALPS, with the index provided by Cohen & Steers.
Company Press Release
New York, May 9, 2008—ALPS Holdings, Inc. and Cohen & Steers today announced the launch
of a global real estate exchange-traded fund (ETF) that offers investors an opportunity to participate
in the income streams and diversification benefits of global real estate securities. ALPS is a leading
provider of outsourced and advisory solutions to the investment management industry, and
Cohen & Steers is a manager of income-oriented equity portfolios specializing in U.S. and
international real estate securities, large cap value stocks, utilities and listed infrastructure securities,
and preferred securities.
The new Cohen & Steers Global Realty Majors ETF (AMEX: GRI), which began trading today, is
advised by ALPS Advisers, Inc. The index is provided by Cohen & Steers. The ETF seeks
investment results that correspond to the performance of the Cohen & Steers Global Realty Majors
Index, which comprises securities of companies that have been evaluated on management strength and
track record, market position, and the composition and quality of their real estate portfolios, among
Cohen & Steers Global Realty Majors ETF targets 75 industry-leading real estate companies from an
initial universe of 500 that are located in developed markets across North America, Asia Pacific and
Europe. The companies are selected through a bottom-up process that uses quantitative screens and
qualitative analysis to identify those real estate companies that are best positioned to gain from the
securitization of global real estate. This gives investors exposure to asset class diversification, an
opportunity to participate in the global growth of real estate securities and direct participation in
local economic growth.
Incorporating real estate securities into an ETF structure may provide investors with the low
expenses, tax efficiency, transparency and liquidity that ETFs provide, along with an opportunity to
benefit from the potentially substantial and growing long-term income streams and diversification
benefits that real estate securities may provide.
“By partnering with a real estate securities pioneer like Cohen & Steers to develop this ETF, we are
offering investors a best-in-class approach to participating in the global real estate market,” said
Tom Carter, Managing Director of ALPS. “Cohen & Steers has established an impressive track
record in real estate securities analysis and investment that we believe will make this ETF a category
Many governments around the world have introduced or are evaluating the introduction of real
estate investment structures similar to U.S. REITs. The reasons are clear: REITs give companies the
potential to create substantial, long-term income streams and offer the opportunity for significant
market growth. In fact, as a result of the emergence of REIT-like structures, the total market
capitalization of global real estate securities has already increased from $110 billion in 1992 to $1.1
trillion in 2007.
“We’re pleased to be able to offer investors access to global real estate securities through an ETF,”
said Martin Cohen, Co-Chairman and Co-Chief Executive Officer of Cohen & Steers. “In our view,
real estate is one of the best and most direct ways to invest in a country’s or region’s economy,
which makes it a powerful tool for diversification.”
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