Finding diversification beyond commercial property

Property can offer downside protection

clock • 4 min read
Shayan Ratnasingam of Liontrust Multi-Asset team
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Shayan Ratnasingam of Liontrust Multi-Asset team

Seeking diversification beyond equities and bonds has seen multi-asset investors turning to property funds to fulfil this role.

Bricks and mortar's easy-to-understand business model has obvious familiarity benefits, with many of us comfortable with the experience of owning a home, but recent years have provided ample evidence that open-ended property funds have serious shortcomings.  Beyond diversification, property can offer downside protection, benefitting from fundamentals that are resilient against broader market volatility. These include long-dated contracted cashflows via rental income and protection against inflation, with property often enjoying upward-only rent reviews linked to the Consumer or Retail...

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