QIR: Quantitative Investment Research

CBRE Investment Management is powered by one of the most expansive research capabilities in the world. With an extensive team of researchers and analysts and access to CBRE’s global research capability, we ensure that nothing is left unturned in the data-driven real assets market.

While the data we have at our disposal gives us a clear market advantage, it’s what we do with it that sets us apart. Our Quantitative Investment Research (QIR) team comprises investment and research professionals whose blended expertise has shaped the development of a series of innovative tools and investment systems to turn insight into action across our listed-REITs offering.

Relative Value Analysis (RVA)
This stock ranking tool analyses the expansive data at our disposal using a factor-based model that effectively evaluates the attractiveness of individual securities across the real estate sectors. The RVA looks at four broad factors: Value, Growth, Quality and Market, and assesses these according to proprietary fundamentals which have been identified and refined by the investment team over the last 30 years and are enhanced by QIR’s rigorous historical analysis and input.
 
While the RVA accommodates variables that reflect the nuances of real estate, it centers on the consistent application of factors that demonstrate long-term effectiveness. The result is a robust RVA scoring system that guides stock selection and helps ensure buy/sell discipline. The RVA analyses assets on a weekly basis, or more regularly as investment opportunities arise or underlying stocks, portfolio manager or client needs dictate.
 
Sector Ranking Analysis (SRA)
The SRA is critical to shaping CBRE Investment Management’s top-down geographic and sector allocation process and driving a truly colligate investment approach. The portfolio management team uses this proprietary tool to quantify the geographic and sector themes that are identified by our Global Investment Policy Committee (GIPC). By using three broad categories: Value, Growth and Market, the tool systematically analyses and then ranks each of the 20 property market sub-sectors on a global scale. The SRA rankings for each sector are critical to driving continued outperformance across our key markets.
 
PRISM
PRISM is a customised risk model that monitors and manages factor exposures specifically for REITs. Devised as a more accurate alternative to the industry-wide practice of analysing specialist risk exposure using broad equity models with often inconsistent results, PRISM provides clear visibility and risk management specific to REITs. By analysing the risk levels, source and form across all REITs, PRISM empowers portfolio managers with a clear view of their exposure and continued conviction in their investment approach. PRISM is critical to our portfolio construction process, from portfolio optimization to on-going risk management.
 
With a greater investment universe comes a deeper pool of opportunity and QIR is well placed to innovate, analyse and inform so we can optimize portfolio design for our clients.