AUSTRALIA - The listed property trust (LPT) market offers diversification benefits, despite poor performances this year, according to a white paper published by LaSalle Investment Management.
Todd Canter, CEO, LaSalle Investment Management (Securities) Asia Pacific, said: "Investors should consider diversifying into a global property securities portfolio for two primary reasons, the recent increased volatility in the LPT sector; and research findings demonstrating the added diversification benefits from investing in global property securities."
The research found Australian property securities to be the best performing asset class, with a return of 12.5%, followed by global property securities, which returned 9.2%.
Both global and Australian property securities delivered higher returns than equities or bonds and displayed low to moderate correlation with other asset classes. There were also low correlations between property securities sectors in different countries.
The research also showed little evidence of correlation between property securities in different countries, causing the reports authors to think the driving forces of each market were different.
Canter added: "Added return without added risk; that is the power of diversification and that is the power of property securities in a mixed-asset portfolio."
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