The Performance of Non-Listed Opportunity Real Estate Funds in China

27 Pages Posted: 19 Mar 2021 Last revised: 22 Mar 2021

See all articles by Graeme Newell

Graeme Newell

Western Sydney University - School of Economics and Finance

Jufri Marzuki

Western Sydney University

Martin Hoesli

University of Geneva - Geneva School of Economics and Management (GSEM); Swiss Finance Institute; University of Aberdeen - Business School

Rose Neng Lai

University of Macau

Date Written: March 19, 2021

Abstract

Institutional investors have sought exposure to the China real estate market, often via opportunity real estate funds. This has been by a pure China opportunity real estate fund or by a pan-Asia opportunity real estate fund where China opportunity real estate was part of this real estate portfolio. This paper develops two bespoke China opportunity real estate fund performance indices to assess the risk-adjusted performance and diversification benefits of China opportunity real estate funds in a mixed-asset portfolio. Over 2008-2019, pan-Asia opportunity real estate funds were seen to outperform pure China opportunity real estate funds. China opportunity real estate funds were seen to have a role in a China mixed-asset portfolio; particularly at lower risk levels in the portfolio risk spectrum. This paper also highlights critical issues for institutional investors for effective China real estate exposure.

Keywords: Non-listed real estate fund, opportunity real estate fund, China, risk-adjusted performance, real estate investment strategy

JEL Classification: R33

Suggested Citation

Newell, Graeme and Marzuki, Jufri and Hoesli, Martin Edward Ralph and Lai, Rose Neng, The Performance of Non-Listed Opportunity Real Estate Funds in China (March 19, 2021). Swiss Finance Institute Research Paper No. 21-27, Available at SSRN: https://ssrn.com/abstract=3808046 or http://dx.doi.org/10.2139/ssrn.3808046

Graeme Newell

Western Sydney University - School of Economics and Finance ( email )

Locked Bag
Penrith South DC, NSW 1797
Australia

Jufri Marzuki

Western Sydney University ( email )

PO Box 10
Kingswood, NSW 2747
Australia

Martin Edward Ralph Hoesli (Contact Author)

University of Geneva - Geneva School of Economics and Management (GSEM) ( email )

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Geneva 4, Geneva 1211
Switzerland
+41 22 379 8122 (Phone)
+41 22 379 8104 (Fax)

Swiss Finance Institute

c/o University of Geneva
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Switzerland

University of Aberdeen - Business School ( email )

Edward Wright Building
Dunbar Street
Aberdeen, Scotland AB24 3QY
United Kingdom
+41 22 379 8122 (Phone)
+41 22 379 8104 (Fax)

Rose Neng Lai

University of Macau ( email )

Av. Da Universidade, Taipa
Macau, Nil
Macau

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