IIJournals JPM-Special Real Estate Article Collection | Page 25

EXHIBIT 4
Percentage of Pension Funds Investing in Indirect Real Estate

EXHIBIT 5
Whether and How Funds Invest in Real Estate (per size quintile)

the smallest pension funds investing in real estate, less
than one-fifth invest indirectly. For every subsequent
quintile, the percentage of indirect real estate investors increases, reaching about 40% for the pension funds
in the largest quintile. This is counterintuitive, with

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important implications for the performance of pension
fund investments in real estate, as we will show.
The other choice pension funds have to make when
implementing their real estate strategy is whether to
opt for internal management, external management, or

A GLOBAL P ERSPECTIVE ON P ENSION FUND INVESTMENTS IN R EAL ESTATE

JPM-ANDONOV.indd 36

SPECIAL R EAL ESTATE ISSUE 2013

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