The key fund characteristics determining risk can be measured objectively: leverage, market weights, number of holdings, income security and development exposure.

Fund risk can then be estimated, but it will always be based on expectations for the volatility of growth, vacancies and costs.

Although we cannot know the future, we can specify our investment beliefs and philosophy. For example, your organisation might believe that office rents do not grow in real terms and are cyclical and that residential rents also track inflation but are very stable.

The RES Asset Allocation Model estimates fund risk and return based on your assumptions, for more information email contact@realestatestrategies.co.uk