Are All Open-End Core Funds Created Equal?

摘要

An examination of the characteristics of open-end core funds, the first study of this important class of property funds, reveals some interesting results. First, as would be expected by many investors, most OECFs do seem to be well diversified, and provide exposure to systematic property market risk. Importantly, though, this is not universal across all funds. Smaller funds, in particular, appear to be less diversified and have returns with a greater amount of idiosyncratic volatility. Further, many OECFs have a surprisingly large exposure to development projects. Hence, while we conclude that most OECFs do represent core investments, as that term would most usually be defined, investors should not assume that this is the case for all funds.