The performance and diversification potential of non-listed value-add real estate funds in Japan

Martin Hoesli, Graeme Newell, Muhammad Jufri Bin Marzuki, Rose Neng Lai

Research output: Contribution to journalArticlepeer-review

5 Citations (Scopus)

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 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.
Original languageEnglish
Article number198
Number of pages16
JournalJournal of Risk and Financial Management
Volume15
Issue number5
DOIs
Publication statusPublished - 2022

Open Access - Access Right Statement

This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/).

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