DEVON, PA--(Marketwired - November 01, 2016) - Tierra Capital Partners LLC today announced annual results for the first Index to exclusively track a diversified and fully-investable basket of Latin America real estate investment trusts (REITs) and real estate operating companies (REOCs). The Solactive Latin America Real Estate Index (index ticker: LAREPR), returned 23.9% since inception date of September 3, 2015 through October 31, 2016. On a year-to-date basis, LAREPR returned 33.7% with a projected dividend yield of 5.5%. For a full report please visit LAREPR First Year Review.
"In addition to being the top performing global real estate strategy year-to-date in a universe of over 375 listed products with $250 billion of assets under management, LAREPR delivered very attractive non-correlated alpha and income," said James Anderson, Managing Partner of Tierra Partners, creator of the Index. "To have our research corroborated by live market data and a listed ETF product is very exciting. In late 2015, we concluded that oversold conditions in emerging markets were near an inflection point, so going live made a lot of sense and our timing appears prescient as Latin America, in our view, represents one of the best growth prospects in the world."
The regionally focused index includes all widely-held Mexico and Brazil REITs and all major REOCs in Mexico, Brazil, Argentina and Chile. It has sixty-one components focused on office, industrial, commercial retail, and hospitality real estate, which represent the region's main property types.
For the year-to-date period, LAREPR was up 33.8%, exhibited 61% correlation to the S&P500 and had 20.9% realized volatility. In contrast, the MSCI Emerging Markets Index returned 18.5%, was 85% correlated to the S&P500 and had 21.8% realized volatility. The widely tracked MSCI REIT Index was down 0.2% over the period with 16.3% realized volatility. LAREPR was only 42% correlated to the MSCI REIT Index for the period.
"What this data suggests is an investor can have Latin America exposure without the high volatility associated with the region; LatAm real estate offers a low volatility, non-correlated exposure not available in competing strategies," Mr. Anderson continued. "Furthermore, LAREPR tracks a dividend yield that is more than three times greater than most EM strategies. Real estate is an ideal sector to gain exposure to the improving macro-economic conditions in Latin America."
The Solactive Latin America Real Estate Index is currently licensed to Tierra Funds for listed ETF product strategies. Solactive AG, the calculation agent, disseminates index data on the Frankfurt Exchange and on Bloomberg under the ticker LAREPR.
About Tierra Partners
Tierra Partners (www.tierrapartners.com) is an ETF sponsor focused in the Americas region. Our principals have extensive experience in real estate alternatives, portfolio management and custom indexing.
We believe the Americas block is strategically positioned to drive global growth well into the 21st century. Our principals have worked extensively in both the public and private markets on behalf of institutional investors who seek to optimize their risk-adjusted exposure to the region.