FAST FACTS

Global Index Group is an investment innovator offering an innovative financial instrument, called duETS, that provides long-sought risk mitigation to today’s private real estate investor.

duETS are a series of trust securities sold to institutional investors. duETS can be bought and sold in a secondary market with liquidity provided by major banks. duETS allow investors to hedge their real estate risk or increase their exposure to real estate in security form.

REACHING THE BOILING POINT

The housing crisis that led to 2008’s Great Recession was crushing not just for American consumers, but also those on the financing end.

It all started with real estate investors and mortgagees having no safe way to hedge the impending risk.  The only tools at their disposal contained no central settlement, and actually brought about additional, significant counterparty risk.

This lack of flexibility was absolutely a key contributing factor to the collapse of major financial institutions and markets.

The creation of instruments like credit default swaps provided risk management - but the counterparty risk and leverage remained.  This lack of effective risk management vehicles has meant a high cost of capital in the real estate financing industry.

With talks of another market downturn on the horizon, the need is pressing for another innovation that mitigates risk - both for investors and our nation’s sake.

REAL RISK MANAGEMENT

Introducing Global Index Group (GIG): a financial services company looking to transform the real estate equity & debt markets by providing a brand new way to invest.

These innovative new index-based instruments - called duETS (down up Equity Trust Securities) - allow for real estate investing with more liquidity, lower cost of capital & minimal counterparty risk.  In turn, banks and other financial institutions can enjoy hedged market exposure.

duETS investors will own a trust security giving them a short or long-term exposure to illiquid asset classes (e.g. commercial or residential real estate).  They will now have all the tools needed to effectively manage 21st century real estate investment risk:

duETS truly have game-changing potential - not only in the enhancement of how real estate is financed, but also by giving financial institutions the ability to allocate capital more efficiently.  It’s the risk management solution that has the market prepared for anything.

HOW duETS WORK

Our instruments deliver investors with synthetic exposure to private real estate, which makes investing quick & easy.  Both long and short securities based on the future performance of real estate indexes like the NCREIF NPI are available.

Finally, NAV is distributed between Down & Up Securities based on the percentage change in reference index.  Financial gain is therefore achieved through securities (not swaps) and with no counterparty risk.

We ultimately envision offering 15-20 duETS products across an array of commercial and residential real estate indexes.

We’ll provide investors with even more options through various multiple-year measurement periods and index multipliers.

GAINING MOMENTUM

Some of the top achievements we’ve enjoyed during our company’s short history:

Initial duETS products have been fully developed.

Getting strong support from top asset management players, with some very eager to be the first to buy.

Obtained patents pending on various elements of the duETS structure.

Secured exclusive index license agreements with Zillow, Real Capital Analytics, S&P Case-Shiller, and the National Council of Real Estate Investment Fiduciaries.

In the process of forming additional partnership agreements with top companies like JP Morgan, Citigroup, Goldman Sachs, KPMG, and Bank of New York/Mellon.

Actively engaging with interested asset managers to take part in our Early Adopter Incentive Scheme; have also gained strong investor interest already.

For more information on Global Index Group and what they have planned for the future, please request access to the Business Plan portion of this Fundable profile.

MEET OUR INNOVATORS

GIG was conceptualized by Founder & CEO, Kelly Haughton, an experienced industry professional who led the design and creation of the Russell Equity Index Family including the Russell 2000, an illiquid small cap stock index.

ETFs, options, and other tools based on the Russell 2000 successfully brought liquidity & risk management to small cap; and now, there’s $100B+ in ETF assets in management based on Kelly’s products.  Currently, he is also the sole member of our Board of Directors.

Kelly is joined by CFO & COO Paul Starkey, who spearheads our operational and tech efforts.  Under his licensing and technology business Indxis, Paul also developed a product line - called Dividend Achievers - that managed multiple billions in assets.

Dividend Achievers was ultimately acquired by NASDAQ.  In the past, Paul also held a Managing Director of Strategy role with Mergent Inc. and a Managing Director role with Kinetic, a leading index calculation technology company.

The duo’s combined experience has led to analysis of a variety of potential liquidity providers, and the impact of our concept on real estate capital markets & related portfolios.  Fast forward to today, and we’ve landed on the ideal investment instrument.