27th October 2016, Professional Planner
A report by Aitchison Consultants has shown that the inclusion of residential property in a portfolio can enhance performance in moderate, balanced and growth investment portfolios.
The report supports property as an inclusive strategy and that residential property with it’s relatively low volatility provides a stable anchor to these portfolio types.
The figures taken over a rolling 20 year period with different asset allocations show a decidedly positive result. A growth portfolio with 20% to real property could be improved by up to to 9.6%, a balanced portfolio with 15% could show a 6.7% improvement and a moderate portfolio with only 10% exposure a 3.7% uplift.
DomaCom CEO, Arthur Naoumidis, said that “DomaCom is the ideal vehicle to control asset allocation in real property without the client’s need to borrow if that is deemed an inappropriate strategy. ”
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