TY - JOUR
T1 - The Performance and Diversification Potential of Non-Listed Value-Add Real Estate Funds in Japan
AU - Hoesli, Martin
AU - Newell, Graeme
AU - Marzuki, Muhammad Jufri
AU - Neng Lai, Rose
N1 - Acknowledgments: The authors acknowledge the generous support of ANREV, MSCI and Real Capital Analytics in providing the necessary data for analysis. They are also grateful for the constructive comments by four reviewers.
PY - 2022/4/22
Y1 - 2022/4/22
N2 - In the aftermath of the COVID-19 pandemic, non-core investments are gaining traction amongst institutional investors due to the shifting preference towards investment vehicles that position higher on the risk–return curve. Non-listed value-add real estate funds in Japan are one such vehicle. This research develops a comprehensive bespoke benchmark total return index using the ANREV database to reflect the performance of Japan-focussed non-listed value-add real estate funds. We compare the performance of such funds with that of other asset classes and perform portfolio and regression analyses. We conclude that there are several advantages to investing in those funds, including: (1) strong absolute total return performance, (2) competitive risk-adjusted performance, and (3) significant portfolio diversification potential in a mixed-asset portfolio context. The strategic implications for real estate investors are also assessed.
AB - In the aftermath of the COVID-19 pandemic, non-core investments are gaining traction amongst institutional investors due to the shifting preference towards investment vehicles that position higher on the risk–return curve. Non-listed value-add real estate funds in Japan are one such vehicle. This research develops a comprehensive bespoke benchmark total return index using the ANREV database to reflect the performance of Japan-focussed non-listed value-add real estate funds. We compare the performance of such funds with that of other asset classes and perform portfolio and regression analyses. We conclude that there are several advantages to investing in those funds, including: (1) strong absolute total return performance, (2) competitive risk-adjusted performance, and (3) significant portfolio diversification potential in a mixed-asset portfolio context. The strategic implications for real estate investors are also assessed.
KW - non-listed real estate fund
KW - value-add real estate fund
KW - Japan
KW - Risk-Adjusted Performance
KW - real estate investment strategy
U2 - 10.3390/jrfm15050198
DO - 10.3390/jrfm15050198
M3 - Article
VL - 15
JO - Journal of Risk and Financial Management
JF - Journal of Risk and Financial Management
SN - 1911-8066
IS - 5
M1 - 198
ER -