NEW YORK CITY-In part 1 of this article, we looked at the findings of the MSCI Inc.’s bi-annual survey of asset allocation practices among pension funds and sovereign wealth funds. A complicated survey and analysis, the report, however, came to some definitive conclusions. Asset managers of these investment vehicles have developed a heightened awareness of the need for commercial real estate-specific risk management techniques and best practices. Also, to their credit, increasing numbers of these managers are trying out new concepts and theories.

The rub, though, is that many of these new theories will not be completed vetted and tested until the next crisis, Peter Hobbs, managing director of Research for MSCI-IPD tells GlobeSt.com. “The jury is still out about whether they will work in times of distress like the financial crisis of 2008.”

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