BENCHMARKING, ATTRIBUTION AND RISK ANALYSIS
This course first reviews the different return calculations used to evaluate the performance of properties and funds. Next, the course explores the characteristics of an ideal property and fund level benchmark and what benchmarks are most appropriate for different investment strategies. This leads to the examination of various attribution models used to evaluate a manager’s over‐ or under‐performance relative to the benchmark. Did the fund perform differently because it diversified differently than the benchmark or because it did a better or worse job of selecting individual properties? Did the fund take on more or less risk than the benchmark? Did the fund earn “alpha?” What causes the returns for a fund to differ from the return for the properties in the fund? How do leverage, joint ventures, fee structures and other factors impact this difference? These are the kinds of questions discussed in this course. The course is hands on with case studies and use of Excel to do various analyses. The NCREIF database is also used to create custom benchmarks.
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ABOUT THE CERTIFICATE PROGRAM
The National Council of Real Estate Investment Fiduciaries (NCREIF) certificate program offers an exciting opportunity for professionals pursuing a career in institutional real estate investment. NCREIF member firms include the leading investment management firms with over $500 billion of capital invested in apartments, office, retail, industrial and other types of large‐scale commercial property. This certificate program has been designed specifically to cover the concepts and techniques needed to be successful in a career related to institutional real estate investment, including investments managed directly, or by investment management firms, on behalf of pension funds, endowments, foundations, and high‐net worth individuals. Topics range from fundamental theories to cutting edge tools and methodologies of industry practice. The curriculum combines the research and expertise of university professors and instructors with the practical knowledge and expe‐ rience of industry leaders from among NCREIF’s member organizations. Our line‐up of faculty are globally‐renowned thought leaders, practitioners, and sought‐after consultants in these topics and are great instructors. The program blends the vast experience of NCREIF with the technical prowess of faculty from universities whose academic careers have also involved working with institutional real estate investors.