Benefits of Open Architecture and Multi-Management in Real Estate Markets—Evidence from French Nonlisted Investment Trusts
利用法国非上市房地产投资基金的独特数据，研究发现通过选择和分散投资，投资者能显著提升风险调整后收益，且15只基金即可获得90%以上的分散化好处。
Using a unique dataset of Sociétés Civiles de Placement Immobilier (SCPIs), the authors provide evidence that the French nonlisted real estate investment funds market exhibits a substantial level of dispersion in risk and return characteristics. The authors find several attributes to have meaningful explanatory power with respect to such differences in risk and performance. They also find that portfolios of nonlisted real estate investment funds exhibit a substantially lower level of volatility than the average fund in the panel and that 15 SCPIs are enough to capture over 90% of these diversification benefits. Taken together, these results suggest that substantial value can be added by selection and allocation decisions, which could form the basis for a welfare-enhancing open architecture multi-management approach to investment in unlisted real estate investment trusts. <b>TOPICS:</b>Real estate, developed markets, portfolio construction, performance measurement <b>Key Findings</b> ▪ Open architecture and multi-management are untapped sources of added value in the French unlisted real estate fund market. ▪ Through suitable selection and diversification decisions, investors in French real estate funds can achieve substantially higher risk-adjusted performance. ▪ These insights can be of potential relevance for other unlisted real estate investment trust markets.