IPF Researches Property Risk

LONDON-The Investment Property Forum, a group committed to a keener understanding of property investment dynamics, has commissioned research into measuring, managing and controlling risk in property investment portfolios.

Some property investors and advisors in the UK have already begun to adapt risk management techniques developed for other asset classes to property portfolios.

But the IPF believes the issues and possible methods of portfolio risk control are not well appreciated among property investors.

Dr Paul McNamara, Director and Head of Research at Prudential Property Investment Managers, said: “Despite recent advances, the concept of ‘portfolio risk management’ is much less well developed in property than it is in other investment asset classes.”

He added: “Property investors and a small number of advisors have begun to import and customise risk management techniques from the other asset classes for use on property portfolios. This project aims to meet this need by examining the theoretical underpinnings of the risk measures used in property and other investment markets and assessing their potential for practical application in a property context.”