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Article

The Performance and Diversification Potential of Non-Listed Value-Add Real Estate Funds in Japan

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Geneva School of Economics and Management, University of Geneva, 1211 Geneva, Switzerland
2
Business School, University of Aberdeen, Aberdeen AB24 3FX, UK
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School of Business, Western Sydney University, Locked Bag 1797, Penrith, NSW 2751, Australia
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Faculty of Business Administration, University of Macau, E22, Ave. Da Universidade, Taipa, Macao SAR, China
*
Author to whom correspondence should be addressed.
Academic Editors: Rita Yi Man Li and Robert Brooks
J. Risk Financial Manag. 2022, 15(5), 198; https://doi.org/10.3390/jrfm15050198
Received: 7 February 2022 / Revised: 25 March 2022 / Accepted: 21 April 2022 / Published: 22 April 2022
(This article belongs to the Special Issue Real Estate Economics and Finance)
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. View Full-Text
Keywords: non-listed real estate fund; value-add real estate fund; Japan; risk-adjusted performance; real estate investment strategy non-listed real estate fund; value-add real estate fund; Japan; risk-adjusted performance; real estate investment strategy
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MDPI and ACS Style

Hoesli, M.; Newell, G.; Marzuki, M.J.B.; Lai, R.N. The Performance and Diversification Potential of Non-Listed Value-Add Real Estate Funds in Japan. J. Risk Financial Manag. 2022, 15, 198. https://doi.org/10.3390/jrfm15050198

AMA Style

Hoesli M, Newell G, Marzuki MJB, Lai RN. The Performance and Diversification Potential of Non-Listed Value-Add Real Estate Funds in Japan. Journal of Risk and Financial Management. 2022; 15(5):198. https://doi.org/10.3390/jrfm15050198

Chicago/Turabian Style

Hoesli, Martin, Graeme Newell, Muhammad J.B. Marzuki, and Rose N. Lai. 2022. "The Performance and Diversification Potential of Non-Listed Value-Add Real Estate Funds in Japan" Journal of Risk and Financial Management 15, no. 5: 198. https://doi.org/10.3390/jrfm15050198

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