Investing in global real estate is a good way to provide portfolio diversification, although a lack of local knowledge and currency and political risks should be mitigated with appropriate strategies and an experienced fund manger.
Against the backdrop of weak global economic growth and poor equity returns over recent years, one of the few shining lights of investment performance has been real estate (see chart below). While real estate was once off the radar screen for many investors - hence the low allocations to real estate by pension funds globally, many are now taking note of the benefits that this asset class can deliver in a diverse portfolio. Possible reasons as to why many investors shunned real estate in the past include the perception that it was highly illiquid. Most investors also have bad memories of ...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
