MIT Libraries logoDSpace@MIT

MIT
View Item 
  • DSpace@MIT Home
  • MIT Libraries
  • MIT Theses
  • Graduate Theses
  • View Item
  • DSpace@MIT Home
  • MIT Libraries
  • MIT Theses
  • Graduate Theses
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

High net-worth individuals' portfolios : private real estate assets

Author(s)
Juliá, Ramiro, 1973-; Matthai, Rachel, 1973-
Thumbnail
DownloadFull printable version (24.51Mb)
Other Contributors
Massachusetts Institute of Technology. Dept. of Urban Studies and Planning.
Advisor
W. Tod McGrath.
Terms of use
M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. http://dspace.mit.edu/handle/1721.1/7582
Metadata
Show full item record
Abstract
The asset allocations of private real estate in the investment portfolios of High Net Worth Individuals (HNWIs) indicate that HNWIs' portfolio returns are not at optimum levels on a risk-adjusted basis. More specifically, utilizing Modem Portfolio Theory, existing allocations to private real estate should, arguably be increased by as much as twice its present allocation. This deficiency is due to insufficient conduits and products available at financial institutions for HNWIs. This mismatch has created a supply and demand problem of HNWI demand for and financial institutions' supply of private real estate assets. The current HNWIs allocations were examined using the "Survey of Consumer Finances" (Federal Reserve, 1998). HNWIs capable of private real estate investment were investors whose net worth was $25 million and above. The HNWI allocations and more than twenty years of historical investment returns and volatilities for financial assets and real estate, were the foundation for analyzing the variance between actual and optimum portfolio allocations of private real estate. This comparison highlighted how the entire HNWI segment could double its current real estate allocation to meet the optimal portfolio level. Along with this real estate allocation deficiency, the HNWI segment has grown substantially over the last 10 years. Since this is a growing segment and a potential source of capital for the real estate industry, this thesis specifically identifies the real estate asset allocation inefficiencies, recommends optimum real estate asset allocations, and lists the alternatives and characteristics of investment conduits and products for increased investment in private real estate by HNWIs.
Description
Thesis (S.M.)--Massachusetts Institute of Technology, Dept. of Urban Studies and Planning, 2002.
 
Vitae.
 
Includes bibliographical references (leaves 132-136).
 
Date issued
2002
URI
http://hdl.handle.net/1721.1/32228
Department
Massachusetts Institute of Technology. Department of Urban Studies and Planning
Publisher
Massachusetts Institute of Technology
Keywords
Urban Studies and Planning.

Collections
  • Graduate Theses

Browse

All of DSpaceCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsThis CollectionBy Issue DateAuthorsTitlesSubjects

My Account

Login

Statistics

OA StatisticsStatistics by CountryStatistics by Department
MIT Libraries
PrivacyPermissionsAccessibilityContact us
MIT
Content created by the MIT Libraries, CC BY-NC unless otherwise noted. Notify us about copyright concerns.