Appendix F

Asset classes left out of the rational portfolio

The marginal case for commercial property

Despite the questionable history of great returns in residential property and its presence in many portfolios through home ownership, general property investing has been a thriving investment for some over the years and an integral part of many diversified portfolios. While there is good evidence that the return profile for commercial property has been attractive in the past, to my knowledge there hasn’t been a global diversified investable property index like there is in the stock markets with the MSCI World index and others. As an example, the FTSE EPRA/NAREIT Global index was not launched until 2009 and even while there is global data ...

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