MMP321 Study Guide - Final Guide: Spot Contract, Tax Treaty, Real Estate Investment Trust
31 May 2021
School
Department
Course
Professor
Document Summary
Describe three ways an investor can invest indirectly in international property markets. Answer: currency): purchase units in a local pf that owns international properties, purchase units in a pf operating in another country (traded in another. Three ways to invest indirectly" in international property markets: purchase units in a globalreit which holds interests in worldwide portfolio. Unit prices either denominated in either local or overseas currency. Identify and explain the two key drivers for investing in international property markets. Diversification: investing in property markets globally can provide risk reduction for investors. Research has shown that investors can achieve improved risk/return outcomes by including international properties in a mixed asset portfolio. Enhanced returns: international investment can provide higher potential returns than are available domestically. International property investments are available across the risk-return spectrum. Enhanced returns are likely to be available in higher risk markets and funds. Discuss three conclusions from empirical research on diversification across international property markets.
