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Keywords = non-listed real estate fund

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16 pages, 465 KiB  
Article
The Performance and Diversification Potential of Non-Listed Value-Add Real Estate Funds in Japan
by Martin Hoesli, Graeme Newell, Muhammad Jufri Bin Marzuki and Rose Neng Lai
J. Risk Financial Manag. 2022, 15(5), 198; https://doi.org/10.3390/jrfm15050198 - 22 Apr 2022
Cited by 7 | Viewed by 6020
Abstract
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 [...] Read more.
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. Full article
(This article belongs to the Special Issue Real Estate Economics and Finance)
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