The Role of Real Estate in Objectives Driven Asset Allocation

In this paper, we examine the role of real estate in a multi-asset class institutional portfolio that adopts an objectives-driven asset allocation framework. We show that real estate may serve a variety of functions in an institutional investor's portfolio and should not be treated as a homogeneous asset class. Instead, the appropriate type of investment should be aligned with the total plan goals, with a focus on evaluating different real estate investments for their ability to add value to specific investment objectives.

Authors: NAGY Zoltan, NIELSEN Frank, SURYANARAYANAN Raghu

Topic: Asset Allocation and Asset Liability Management

Asset Types: Multi-Asset Class