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The Significance and Performance of Japan REITs in a Mixed-Asset Portfolio

Author/s: Graeme Newell, Hsu Wen Peng

Date Published: 1/01/2012

Published in: Volume 18 - 2012 Issue 1 (pages 21 - 34)

Abstract

REITs in Japan (J-REITs) are the largest REIT market in Asia and the 5 largest REIT market globally. To examine the attractiveness of J-REITs for investors, this paper assesses the significance, risk-adjusted performance and portfolio diversification benefits of J-REITs in a mixed-asset portfolio context in Japan over 2001-2011. Amongst the major asset classes, J-REITs delivered the best risk-adjusted returns and portfolio diversification benefits over 2001-2011, with enhanced risk-adjusted returns in the post-GFC period. Key strategic issues for the ongoing development of the J-REIT market are also identified.

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Keywords

Asia Reits - J-Reits - Japan - Portfolio Diversification - Post-Gfc Performance - Risk-Adjusted Returns

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