2010 seen to be a year of bottom fishing for institutional real estate investors
Jan 20th, 2010 | Filed under: Institutional Investing, Real Estate, Today's Post
According to a June 2009 research note on “How Institutional Investors Think About Real Estate” by the Harvard Business School, institutions invest in real estate,”…because of its returns, the high cash flow component of its returns, the dampening of the volatility in a portfolio and as an inflation hedge.” The note concludes that real estate is, “…an increasingly important component in the portfolios of institutional investors.”
Despite the bath taken by some real estate investors in 2009, a recent survey of institutional investors seems to corroborate this conclusion. bFinance, the UK-based consultancy surveyed European and North American institutions in December 2009 to see how their views had changed since May of that year.
The firm asked investors if their target asset allocation had changed since May 2009. It then measured the difference between the “increased” and “decreased” responses (sort of like the political pollster’s ubiquitous “favorable/unfavorable” rating). Guess who’s the popular kid this year? More…
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