The Optimal Composition of Hybrid/Blended Real Estate Portfolios (February 2019) Seminar Presentation
28
Feb
2019
The winners of the 2018 Nick Tyrrell Research Prize will present the findings from their paper, ‘Optimal Composition of Hybrid/Blended Real Estate Portfolios’. The paper considers an optimum mix of liquid, publicly-traded assets that may be added to a property fund portfolio to provide the enhanced liquidity required by institutional investors such as UK defined contribution pension funds, which use these funds to gain exposure to real estate as an asset class.
The research indicates that applying formal optimisation techniques leads to a considerable improvement in the ability of the returns of blended real estate products to track the underlying benchmark property index, even with the significant addition of liquid, publicly-traded assets.