Real Estate & Planning staff awarded Nick Tyrrell Research Prize 2018
15 October 2018
Industry associations and sponsors, the European Association for Investors in Non-listed Real Estate Vehicles (INREV), the Investment Property Forum (IPF) and the Society of Property Researchers (SPR), have awarded the The Nick Tyrrell Research Prize 2018 to joint authors Dr Frank Ametefe and Dr Steven Devaney, both of Real Estate & Planning, Henley Business School, University of Reading and Professor Simon Stevenson of the University of Washington, for their paper, ‘Optimal Composition of Hybrid/Blended Real Estate Portfolios’.
The paper, published in the Journal of Property Investment & Finance, considers an optimum mix of liquid, publicly traded assets that may be added to a property fund portfolio to provide the enhanced liquidity required by institutional investors such as UK defined contribution pension funds which use these funds to gain exposure to real estate as an asset class. The performance and liquidity of various investments has become an issue of concern among investors, especially as the ability of investors to exit these funds has frequently been compromised in periods following market shocks.
The research indicates that applying formal optimisation techniques leads to a considerable improvement in the ability of the returns of blended real estate products to track the underlying benchmark property index even with significant addition of liquid, publicly traded assets.
Accepting the award Dr. Frank Ametefe said, “We are delighted to have been awarded the Nick Tyrrell Research Prize. Our work was motivated by practical concerns and issues facing open-ended real estate funds who need to hold a proportion of liquid assets, but who wish to minimise tracking error and/or loss of returns from doing so. We hope that the work will be of interest to investors, fund managers and the academic community alike”.
The Prize-winning paper is available at: https://www.emeraldinsight.com…