There has been significant interest over the last three years in combining listed real estate securities with direct or unlisted real estate to provide a "blended" investment solution, which both improves liquidity and optimises risk adjusted returns over the cycle. Following recent work on combining a UK direct portfolio with a global listed portfolio, we have expanded our geographic sample to Asia, Europe, and the US.


We use the new series of transaction based real estate indices provided by DTZ in Europe and Asia, but for the US we use the Moodys CPPI Index._We will use the IPD and NCREIF valuation based indices for the UK, Europe and Asia, respectively

For listed securities we use the EPRA Global developed Index.

Our data covers the period 2002-2014


The aim of the study is to answer four questions:

1) Is the benefit to risk-adjusted returns shown for incorporating global listed real estate securities with a UK direct property fund also apparent if the direct property element comprises European, Asian, and/or US assets?

2) How does the performance impact change over the cycle?

3) Is there a benefit to using transaction rather than appraisal based indices for the US and Europe?

4) Do the results alter materially if global real estate securities funds data is used rather than the EPRA Index?