An Australian superannuation fund identified critical gaps in both property types and geographies within its commercial real estate portfolio.
To address these gaps and improve portfolio performance, the fund partnered with PGIM to integrate REIT investments into its real estate portfolio. This strategy enhanced both sector and geographic diversification by blending private and listed assets, providing efficient access to high-growth, non-core property types, and expanding exposure across Australia, the U.S., Canada, and Europe.
The chart above compares the superannuation fund’s legacy real estate portfolio with the global REIT completion portfolio developed in partnership with PGIM. The pie chart on the left shows that the legacy portfolio was 100% focused on Australian property and encompassed just three traditional property sectors. The global REIT completion portfolio shown on the right expands exposure to the U.S., Canada, and Europe, covering new and emerging property sectors such as multifamily, heath care, specialty housing, self-storage, and digital infrastructure.
PGIM’s REIT solution helped shift the fund toward a comprehensive real estate investment strategy, combining private and listed real estate, resulting in enhanced geographic and sector diversification.
Read additional portfolio completion case studies
- Employees Retirement System of Texas
- South Korea’s National Pension Service (NPS)
- La Salle Securities / U.S. Healthcare System
- City of Austin Employees’ Retirement System (COAERS)
Important Disclosures:
Diversification does not assure a profit or protect against market loss in declining markets. This case study is provided for educational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities. No representation is made that a client will achieve similar results to those shown. For Professional and Institutional Investors only. All investments involve risk, including the possible loss of capital. For more information about PGIM Real Estate, visit https://www.pgimrealestate.com. Data as of July 31, 2024
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