Special real estate funds can significantly raise the performance in a mixed investment portfolio, as they display hardly any correlation with other investment categories, according to a new study published by Patrizia, a listed German property company and fund manger.
Special real estate funds can significantly raise the performance in a mixed investment portfolio, as they display hardly any correlation with other investment categories, according to a new study published by Patrizia, a listed German property company and fund manger.
Special real estate funds come out on top in the research compared with both open-ended real estate funds and direct investments in German properties - they were only be beaten by corporate bonds.
Patrizia compared the performance of different forms of investment that traditionally make up an institutional portfolio on the basis of empirical data from the last ten years.
'Studies on funds, the behaviour of institutional investors and the performance of real estate fill entire libraries. 'So far, little attention has been paid to the analysis of the performance contribution of special real estate funds in a mixed portfolio,’ noted Karin Siebels, head of commercial real estate research at Patrizia GewerbeInvest.
She added: 'This was all the more remarkable, as, for a long time, both special funds and real estate investments were very popular among institutional investors and these regularly committed to increasing the allocation level of real estate. For this reason, the objective had been to determine the return-risk profile of each asset class in comparison and to derive recommendations for the mix und suitability of real estate investments in a return or risk-optimized portfolio.'
