Down/Up Equity Trust Securities (duETS) use a patent-pending structure to give institutional investors both investment and hedging exposure to commercial real estate. For each series of duETS, the Global Index Group Real Estate Trust (the “Trust”) issues two classes of equity securities, Down Securities and Up Securities. The number of Down Securities and Up Securities is always equal and their values are tied negatively or positively to the change in a particular underlying index value over a set Measurement Period. At the end of the Measurement Period, the dollar gains in the Down Securities are mirrored by losses in the Up Securities, or vice versa.
duETS are fully-collateralized synthetic securities that can provide upward or downward exposure to the real estate market with liquidity never before seen in real estate.
duETS currently are private alternative investments for U.S. Qualified Institutional Buyers (QIBs) and offshore investors through a continuous unregistered private offering. Currently, duETS are not publicly listed for trading, but they may be traded under Rule 144A and Regulation S for non-U.S. persons.