Yesterday the National Council of Real Estate Investment Fiduciaries (NCREIF) launched the first daily price index for private real estate (NCREIF Fund Index-Daily Priced (NFI-DP), and announced the index performance for the month of July.
Commenting on the launch, John Ehli, co-president of the Defined Contribution Real Estate Council, said, “The introduction of this daily pricing index represents a major step forward in supporting the adoption of private real estate in defined contribution plans. DC plan sponsors who want to include a private real estate option in their plans have found the issue of daily pricing and liquidity to be a challenge. With the launch of the NCREIF Index, they will now have a window into the daily price movements for this asset class, as well as a tool for better understanding the overall performance and valuation of the positions held by their plans.”
Ehli noted that DCREC continues to see growing sponsor interest in both private and public real estate as options in DC plans. “We believe the availability of this index will encourage more sponsors to take a look at including private real estate in their DC plans,” Ehli said.
Going forward, NCREIF plans to publish the index on a monthly basis.
The DCREC was created to support the use of real estate in defined contribution plans through education, research, and an emphasis on best practices. If you’d like to speak with John about the significance of the launch of the NCREIF index, I’d be happy to arrange a conversation.
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