Real Estate Adds Long Term Value Article Published: 17:04 22/03/2007 Article Classification: Canadian Ski Resort - Fernie
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Investors with some real estate holdings over the past decade would have enjoyed better performance with lower volatility than equities and gilt investors, claimed Investa Real estate.

  Mark Long, head of research and strategy for Investa Real estate, said the benefits of investing in commercial real estate were unequivocal.

  The fund management group studied the performance of the FTSE All-Share index, the FTA five to 15 year gilt index and the UK IPD Annual index.

   The Findings showed commercial real estate performance would have increased over the years, while the volatility of the portfolio would have reduced over the long term.

   Mr Long said: “In a portfolio equally weighted between equities and bonds, adding commercial real estate would have raised performance over the last one, three, five, 10 and 20 year periods.

  “Over the whole 20 year period adding more real estate reduced the volatility of annual performance of a portfolio.”