Insurance
Efficient equities investing: from capital requirements reduction to downside optimisation
In this paper, our experts consider how equity exposure with protection may fit within the asset allocation of European insurers.
Many investors are familiar with the appeal of holding real estate. With a generally low correlation to other asset classes, it can serve as an instant diversifier in a mixed-asset portfolio. Historically, real estate has delivered strong relative performance across multiple cycles compared to other asset classes, and its characteristic stable income, underpinned by long-term leases, makes it a compelling alternative to traditional fixed-income instruments.
In the past, real estate investors around the world have tended to be domestically focused, but increasingly many are now investing in non-domestic or even global real estate. However, assessing the global real estate market and the different means of gaining exposure through listed, unlisted, equity and debt vehicles can be a daunting task. Investors must assess various factors before making an allocation, including the impact of currency fluctuations and foreign tax laws. They must also assess their own internal capabilities for evaluating such an allocation.
In this whitepaper we examine four considerations for investing in global real estate, drawing on industry data and proprietary research to present the case global real estate investment. We consider:
There are a number of potential motivations for investing in real estate. But at its core, real estate is a local asset class, driven by local demographic and economic trends. The lack of synchronization in economic cycles globally reduces the correlation in real estate returns; thus, moving beyond one’s domestic market can offer significant diversification benefits and dampen volatility. For those investors seeking to expand beyond their home country, listed and unlisted global real estate can offer attractive returns and diversification benefits.
Efficient equities investing: from capital requirements reduction to downside optimisation
In this paper, our experts consider how equity exposure with protection may fit within the asset allocation of European insurers.
Central bank reserve asset management whitepaper series
Our series of whitepapers co-authored with Jennifer Johnson-Calari, (JJC Advisory, Founder and Former Head of Reserves Advisory and Management Program World Bank) and Adam Kobor (Director of Investments, New York University Endowment Fund), focus on the challenges faced by central bank reserve managers.
Private rented sector: responding to the growth of ‘co-living’
Investment opportunity, or passing trend? We make the case for greater institutional acceptance of co-living assets.