The Performance and Diversification Potential of Non-Listed Value-Add Real Estate Funds in Japan

Martin Hoesli* (Corresponding Author), Graeme Newell, Muhammad Jufri Marzuki, Rose Neng Lai

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

3 Citations (Scopus)
4 Downloads (Pure)


In the aftermath of the COVID-19 pandemic, non-core investments are gaining traction amongst institutional investors due to the shifting preference towards investment vehicles that position higher on the risk–return curve. Non-listed value-add real estate funds in Japan are one such vehicle. This research develops a comprehensive bespoke benchmark total return index using the ANREV database to reflect the performance of Japan-focussed non-listed value-add real estate funds. We compare the performance of such funds with that of other asset classes and perform portfolio and regression analyses. We conclude that there are several advantages to investing in those funds, including: (1) strong absolute total return performance, (2) competitive risk-adjusted performance, and (3) significant portfolio diversification potential in a mixed-asset portfolio context. The strategic implications for real estate investors are also assessed.
Original languageEnglish
Article number198
Number of pages16
JournalJournal of Risk and Financial Management
Issue number5
Early online date22 Apr 2022
Publication statusPublished - 22 Apr 2022

Bibliographical note

Acknowledgments: The authors acknowledge the generous support of ANREV, MSCI and Real Capital Analytics in providing the necessary data for analysis. They are also grateful for the constructive comments by four reviewers.


  • non-listed real estate fund
  • value-add real estate fund
  • Japan
  • Risk-Adjusted Performance
  • real estate investment strategy


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