According to a Janus Henderson portfolio optimization study, the average investor should consider allocating 10% of a balanced investment portfolio to global REITs, as the asset class can provide valuable income and defensive growth characteristics.
- In our opinion, investors should consider global REITs for three key reasons: income, diversification and liquidity.
- Over the long term, REITs have exhibited low correlation with bonds and equities and provided a cost-efficient way for investors to access global real estate markets.
- REITs also have defensive characteristics, often investing in companies whose tenants have long-duration leases, which can help provide stability through an economic cycle.
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