The Role of Open-Ended Real Estate Funds in Long-Term Portfolio Growth

Sven Rehers

ERES from European Real Estate Society (ERES)

Abstract: The demographic shift and the limitations of Germany’s pay-as-you-go pension system underscore the growing importance of private long-term wealth accumulation. Open-ended real estate funds (OEREFs) may serve as a useful instrument in this context, offering access to broadly diversified property portfolios with relatively stable returns.This paper aims to examine the potential role of OEREFs in long-term wealth building for private investors. Based on a mean-variance optimization framework, it will analyze how the inclusion of OEREFs affects the efficiency of mixed-asset portfolios over time. In addition to return and volatility metrics, the study will incorporate shortfall risk measures and conduct stress tests to assess the robustness of different allocation strategies under varying market conditions. Simulations will be based on historical data on returns, volatilities, and asset correlations.By exploring how OEREFs can contribute to a stable and resilient accumulation of capital, the paper seeks to generate actionable insights for the design of long-term investment strategies tailored to the needs of individual investors.

Keywords: Germany's Pension System; Home Equity Release; Pension Gap (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2025-01-01
New Economics Papers: this item is included in nep-age
References: Add references at CitEc
Citations:

Downloads: (external link)
https://eres.architexturez.net/doc/oai-eres-id-eres2025-199 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arz:wpaper:eres2025_199

Access Statistics for this paper

More papers in ERES from European Real Estate Society (ERES) Contact information at EDIRC.
Bibliographic data for series maintained by Architexturez Imprints ().