Are your nest eggs all in one basket? Managing concentration risk in personal wealth

Andrew Toby CFA – Director, Investment Operations The Unison Solution – Vol. 1 Are your nest eggs all in one basket? Managing concentration risk in personal wealth In this series of blog posts entitled “The Unison Solution,” we aim to provide objective analysis of the various use cases of the Unison program offering.  In this inaugural post, we will explore …

When you invest in real estate funds, fees matter.

Rayan Rafay, CFA – Managing Director, Head of Portfolio Management Institutional investors have been focused on real estate since the early 1970s, a time when many factors converged that compelled institutional investors, particularly pension funds, to begin investing in the asset class.  The first real estate commingled fund was offered in 1968, and with the passage of ERISA in the …

Sunshine and residential real estate

Krishanu Nandy, Ph.D. – Quantitative Strategist “All the leaves are brown and the sky is gray. I’ve been for a walk on a winter’s day. I’d be safe and warm if I was in L.A., California dreamin’ on such a winter’s day.” – The Mamas and The Papas Earlier this year, Chicago’s stretch of 8 days without sunshine (January 21st …

The Devil is in the details: risk and return in residential real estate

Brodie Gay, MFE – Quantitative Strategist   Executive Summary: Residential real estate equity is one of the largest asset classes in the United States and is a significant proportion of the average household’s net worth.  We study how diversified real estate indices lead to a dramatic understatement of the median homeowner’s portfolio risk (by a factor of 4-5x).  Finally, we …

Why institutional investors need to invest in residential real estate

Rayan Rafay, CFA – Managing Director, Head of Portfolio Management  With over $71 trillion USD in assets under management[1], institutional investment is a core driver of the global economy.  Institutional entities have the common objective of generating cash flows capable of fulfilling future obligations.  These obligations fluctuate with respect to economic factors such as interest rates, inflation, and unemployment rates.  …