The significance of property sector and geographic diversification in Australian institutional property portfolios

Graeme Newell; Yen Keng Tan

doi:10.1080/14445921.2003.11104142

The significance of property sector and geographic diversification in Australian institutional property portfolios

Graeme Newell, Yen Keng Tan

Research output: Contribution to journal › Article

26 Citations (Scopus)

Abstract

In a property portfolio, the standard strategies for portfolio diversification and risk reduction are diversification by property type and geographic region, with such property investment strategies typically employed by the major institutional investors. Using the Property Council of Australia (PCA) property indices over 1995-2002, the effectiveness of these property portfolio diversification strategies is assessed for Australian institutional property portfolios. Both property type and geographic diversification are seen to deliver significant diversification benefits, with these geographic diversification benefits confirming the successful sector specific strategy adopted by many listed property trusts in recent years.

Original language	English
Pages (from-to)	248-264
Number of pages	17
Journal	Pacific Rim Property Research Journal
Volume	9
Issue number	3
DOIs	https://doi.org/10.1080/14445921.2003.11104142
Publication status	Published - 2003

Keywords

Australia
corporate divestiture
diversification
investments
Geographic diversification
Sector-specific LPTs
Property sector diversification
PCA property index
Correlations
Tracking error
Pure property returns

Access to Document

10.1080/14445921.2003.11104142

Cite this

@article{85da3c3168864f4a8ce72f1c0452db37,

title = "The significance of property sector and geographic diversification in Australian institutional property portfolios",

abstract = "In a property portfolio, the standard strategies for portfolio diversification and risk reduction are diversification by property type and geographic region, with such property investment strategies typically employed by the major institutional investors. Using the Property Council of Australia (PCA) property indices over 1995-2002, the effectiveness of these property portfolio diversification strategies is assessed for Australian institutional property portfolios. Both property type and geographic diversification are seen to deliver significant diversification benefits, with these geographic diversification benefits confirming the successful sector specific strategy adopted by many listed property trusts in recent years.",

keywords = "Australia, corporate divestiture, diversification, investments, Geographic diversification, Sector-specific LPTs, Property sector diversification, PCA property index, Correlations, Tracking error, Pure property returns",

author = "Graeme Newell and Tan, {Yen Keng}",

year = "2003",

doi = "10.1080/14445921.2003.11104142",

language = "English",

volume = "9",

pages = "248--264",

journal = "Pacific Rim Property Research Journal",

issn = "1444-5921",

publisher = "Routledge",

number = "3",

}

TY - JOUR

T1 - The significance of property sector and geographic diversification in Australian institutional property portfolios

AU - Newell, Graeme

AU - Tan, Yen Keng

PY - 2003

Y1 - 2003

N2 - In a property portfolio, the standard strategies for portfolio diversification and risk reduction are diversification by property type and geographic region, with such property investment strategies typically employed by the major institutional investors. Using the Property Council of Australia (PCA) property indices over 1995-2002, the effectiveness of these property portfolio diversification strategies is assessed for Australian institutional property portfolios. Both property type and geographic diversification are seen to deliver significant diversification benefits, with these geographic diversification benefits confirming the successful sector specific strategy adopted by many listed property trusts in recent years.

AB - In a property portfolio, the standard strategies for portfolio diversification and risk reduction are diversification by property type and geographic region, with such property investment strategies typically employed by the major institutional investors. Using the Property Council of Australia (PCA) property indices over 1995-2002, the effectiveness of these property portfolio diversification strategies is assessed for Australian institutional property portfolios. Both property type and geographic diversification are seen to deliver significant diversification benefits, with these geographic diversification benefits confirming the successful sector specific strategy adopted by many listed property trusts in recent years.

KW - Australia

KW - corporate divestiture

KW - diversification

KW - investments

KW - Geographic diversification

KW - Sector-specific LPTs

KW - Property sector diversification

KW - PCA property index

KW - Correlations

KW - Tracking error

KW - Pure property returns

UR - http://handle.uws.edu.au:8081/1959.7/35069

UR - http://www.scopus.com/inward/record.url?scp=34247169523&partnerID=8YFLogxK

U2 - 10.1080/14445921.2003.11104142

DO - 10.1080/14445921.2003.11104142

M3 - Article

SN - 1444-5921

VL - 9

SP - 248

EP - 264

JO - Pacific Rim Property Research Journal

JF - Pacific Rim Property Research Journal

IS - 3

ER -

The significance of property sector and geographic diversification in Australian institutional property portfolios

Abstract

Keywords

Access to Document

Other files and links

Fingerprint

Cite this