A case for private real estate in HNW investor portfolios

BY   |  FRIDAY, 17 JUN 2022    4:03PM

As institutional investors have optimised their portfolios along the risk and return continuum, real estate has become a meaningful portion of their asset mix, with the average institutional allocating nearly 11% of its investments to the asset class.

It is little wonder that real estate has become a portfolio mainstay. The asset class has exhibited low correlations to both stocks and bonds and demonstrated a long track record of achieving attractive risk-adjusted returns. Real estate historically has provided investors a steady source of income as well as an inflation hedge- important features in the current market environment.

Despite these benefits, high-net-worth (HNW) investors have not accessed the asset class to the same degree as institutional investors.