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22 December 2024

Home / White Papers 2021

The proper(ty) allocation

  •   VanEck
  •   30 September 2021
  •      
  •   

Most Australian portfolios do not have exposure to international property securities. While most Australian investors have exposure to local property securities for their regular income and potential capital growth, it’s unlikely they’ve considered property beyond our shores.

The rationale for an allocation to international property for investors is compelling.

As interest rates globally hover at historic low levels, investors are being starved of income from traditional sources such as bonds or savings accounts. Investors are having to take on more risk and are moving to Real Estate Investment Trusts (REITs) because they provide a reliable income stream. Savvy investors are also looking beyond Australian shores and starting to include international REITs as a way to diversify.

A key benefit of including international REITs in a diversified portfolio, as this paper will show, is that while additional risk is incurred, the historical risk adjusted returns over the past five years have been higher. A portfolio of international REITs also provides investors with important benefits.

Download the full paper here


 

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