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 | |
| 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
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