Measuring the investment made in a property fund is a keyconsideration for an institutional investor, says the FinancialTimes in its weekly look at property.
There has been an attempt to classify them by their differentapproaches to investment. The Investment Property Databank is thebenchmark which has been adopted by the UK. In the US, analysts have resorted to classifying managers not by the financial characteristics of the properties they buy, but by their type.
Now there is an attempt to classify managers by their “style”,whether they are “value” or “growth”. Callan & Co defines a valueportfolio as one in which at least two-thirds of the properties arehigh-yielding and a growth portfolio is one in which two-thirds arelow-yielding. A balanced portfolio is one containing half of each.
- Financial Times 05/09/97 page 24 (Property Market)
