Real Estate Fund Management: Non-Listed Funds and the Risk-Reward Space
Real Estate Fund Management: Non-Listed Funds and the Risk-Reward Space

Author: Tim Schabsky

Publisher: GRIN Verlag

Published: 2013-08-12

Total Pages: 23

ISBN-13: 3656478473

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Seminar paper from the year 2013 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, Cass Business School, language: English, abstract: This essay examines the ability of investors to take desired positions in the risk-reward space by building a portfolio of non-listed funds of different investment styles. The question is examined from the viewpoint of a major institutional investor not subject to meaningful capital constraints. While it is acknowledged that there might be significant practical barriers when implementing the desired portfolio strategy, the essay focuses on the basic theoretical viability. The latest research on non-listed property fund performance was drawn upon. Furthermore, data from the Association of Real Estate Funds (AREV), the European Association for Investors in Non-Listed Real Estate Vehicles (INREV) and the Investment Property Databank (IPD) was used for illustrative purposes. To begin with, a brief introduction to non-listed funds and the concept of risk and reward is given. Subsequently, the methodologies applied by AREF and INREV to classify non-listed property funds are illustrated. Thereafter, the historic performance achieved by different styles is discussed. Then, factors determining the INREV style classifications are compared with the performance drivers identified by recent research. The findings are summarized in the last section.

Return Patterns of German Open-End Real Estate Funds
Return Patterns of German Open-End Real Estate Funds

Author: Sebastian Michael Gläsner

Publisher: Peter Lang

Published: 2010

Total Pages: 132

ISBN-13: 9783631604069

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The aim of this study is to better understand stable capital growth of German properties and to contribute to the explanation of stable fund returns. In the course of the investigation, evidence is found that both phenomena are interrelated. All analyses are based on publicly available data; therefore they are not limited by client interests. Results show three different pieces of evidence on return smoothing, namely the influence on valuation, the timing of valuations, and the influence on returns resulting in return differences by calendar months. Together with the notion of internationally uniquely stable returns, it seems impossible to extract true asset volatility from the observed appraisal-based time series.

Real Estate Investment and Finance
Real Estate Investment and Finance

Author: David Hartzell

Publisher: John Wiley & Sons

Published: 2021-01-05

Total Pages: 596

ISBN-13: 1119526094

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The fully revised and updated version of the leading textbook on real estate investment, emphasising real estate cycles and the availability and flow of global capital Real Estate Investment remains the most influential textbook on the subject, used in top-tier colleges and universities worldwide. Its unique, practical perspective on international real estate investment focusses on real-world techniques which measure, benchmark, forecast and manage property investments as an asset class. The text examines global property markets and real estate cycles, outlines market fundamentals and explains asset pricing and portfolio theory in the context of real estate. In the years since the text’s first publication, conditions in global real estate markets have changed considerably following the financial crisis of 2008-2009. Real estate asset prices have increased past pre-crisis levels, signalling a general market recovery. Previously scarce debt and equity capital is now abundant, while many institutions once averse to acquiring property are re-entering the markets. The latest edition – extensively revised and updated to address current market trends and practices as well as reflect feedback from instructors and students – features new content on real estate development, improved practical examples, expanded case studies and more. This seminal textbook: Emphasises practical solutions to real investing problems rather than complex theory Offers substantial new and revised content throughout the text Covers topics such as valuation, leasing, mortgages, real estate funds, underwriting and private and public equity real estate Features up-to-date sections on performance measurement, real estate debt markets and building and managing real estate portfolios Includes access to a re-designed companion website containing numerous problems and solutions, presentation slides and additional instructor and student resources Written by internationally-recognised experts in capital management and institutional property investing strategies, Real Estate Investment, Second Edition: Strategies, Structures, Decisions is an indispensable textbook for instructors and students of real estate fund management, investment management and investment banking, as well as a valuable reference text for analysts, researchers, investment managers, investment bankers and asset managers.

Real Estate Fund Openings and Cannibalization
Real Estate Fund Openings and Cannibalization

Author: David H. Downs

Publisher:

Published: 2015

Total Pages: 46

ISBN-13:

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This paper examines the trade-offs in launching new real estate funds, specifically open-end, direct-property funds. This investment vehicle, which is designed to provide the risk-return benefits of private market real estate, is available to retail investors in a number of countries. At the same time, these funds are also subject to liquidity risk, because they hold an inherently illiquid asset in an open-end structure. This format presents fund-family managers with unique challenges, particularly with the decision to open new funds. The data consists of 2,127 German fund openings across 76 fund families in 12 asset classes over the 1992-2010 period. Including a wide range of asset classes allows for a comparison between real estate and other investment objectives. We find a substantial cannibalization effect across the existing real estate funds of a family, while we note the opposite effect - i.e., flows into existing funds increase following a fund opening within the same objective - for all other asset classes. Our analysis of fund opening determinants shows that inflows mitigate the cannibalization risk for new real estate funds. Additional evidence highlights the role of scale and scope economies in real estate fund openings. Overall, the results provide new insights into the relatively large size and small number of real estate funds when compared to mutual funds dedicated to other investment objectives.

Real Estate Fund Flows and the Flow-Performance Relationship
Real Estate Fund Flows and the Flow-Performance Relationship

Author: David H. Downs

Publisher:

Published: 2016

Total Pages:

ISBN-13:

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Convexity in the flow-performance relationship of traditional asset class mutual funds is widely documented, however, it cannot be assumed to hold for alternative asset classes. This paper addresses this shortcoming in the literature by examining the flow-performance relationship for real estate funds, specifically open-end, direct-property funds. This investment vehicle is designed to provide the risk-return benefits of private market real estate and is available to retail investors in many countries across the globe. An understanding of fund flow dynamics associated with this investment vehicle is of particular interest due to the liquidity risk associated with holding an inherently illiquid asset in an open-end structure. Our analysis draws on the theoretical foundations provided in the literature on mutual fund flows, performance chasing, liquidity risk, participation costs and dynamics across market cycles. We focus on German real estate funds from 1990 to 2010 as this is the largest market globally and there is a high level of confidence in the data. The results show that real estate fund investors chase past performance at the aggregate level and the relationship between flows and relative performance is asymmetric (i.e., convex) at the individual fund level. Fund-level liquidity risk tends to weaken convexity, while sensitivity increases with higher participation costs. We find the flow-performance relationship varies across time, though our interpretation is asset and investment vehicle specific. The implications are applicable to investors and fund managers of open-end, direct-property funds and, more broadly, other alternative asset funds where the underlying asset may not be liquid.

Swing Pricing and Fragility in Open-end Mutual Funds
Swing Pricing and Fragility in Open-end Mutual Funds

Author: Dunhong Jin

Publisher: International Monetary Fund

Published: 2019-11-01

Total Pages: 46

ISBN-13: 1513519492

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How to prevent runs on open-end mutual funds? In recent years, markets have observed an innovation that changed the way open-end funds are priced. Alternative pricing rules (known as swing pricing) adjust funds’ net asset values to pass on funds’ trading costs to transacting shareholders. Using unique data on investor transactions in U.K. corporate bond funds, we show that swing pricing eliminates the first-mover advantage arising from the traditional pricing rule and significantly reduces redemptions during stress periods. The positive impact of alternative pricing rules on fund flows reverses in calm periods when costs associated with higher tracking error dominate the pricing effect.

Commercial Real Estate Investment
Commercial Real Estate Investment

Author: Andrew Baum

Publisher: Taylor & Francis

Published: 2009-10-26

Total Pages: 434

ISBN-13: 1136416420

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* Author of high repute, both in academia and business * Clearly written, accessible and completely revised for investors, managers, advisors and students * Highly topical in today’s challenging market conditions This book uniquely combines academic literature and practical experience to provide a straightforward and integrated view on global real estate investment for pension funds, other institutions and professionals, particularly in the UK. The book is divided into three sections. Part One describes the market, the industry and the investment vehicles available, as well as a performance history of UK real estate as an asset class. Part Two discusses the property investment process and the tools required to develop excellence in executing that process. Part Three provides material for debate about the likely changes over the short and medium term. Designed for practitioners facing the tough global market challenges, this book provides a fascinating read for fund managers, investors, banking staff, property advisors and students.

Real Estate Finance
Real Estate Finance

Author: Wolfgang Breuer

Publisher: Springer Science & Business Media

Published: 2013-11-08

Total Pages: 136

ISBN-13: 3834938645

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This special issue offers an interesting overview of the status quo of (German) research in real estate finance. It might also contribute to real estate research moving from a research niche closer to the center of academic interest.