Institutional Portfolio Construction and Strategy
This course discusses "top down" approaches to portfolio construction and various strategies for constructing portfolios. It complements the space market analysis course which is a "bottom up" analysis within a particular market. Modern portfolio theory is reviewed and students use the NCREIF data to construct "efficient" portfolios. This is then contrasted with other portfolio construction strategies that may result in over-weighting or under-weighting different property types, geographic or economic areas, or other property and market characteristics. Of course the analysis doesn't stop when a portfolio has been constructed. As economic events unfold, the portfolio may need to be rebalanced and in some cases the strategy may need to be modified while still keeping within the "style" investors expect to be followed by the fund.
This is one of the courses offered as part of the Professional Certificate Program in Institutional Real Estate Investment. We will be offering some of the Academy courses in conjunction with NCREIF conferences to allow conference attendees the opportunity to participate in the certificate program.
Anyone may register for this 2-day course whether they are working toward the certificate or not.
Performance Returns Calculations Seminar
The release of the AIMR (now GIPS) Standards in 1993 was the first step in the standardization of real estate performance returns. However, the GIPS Standards provided guidance primarily on presentation and disclosure, and very little on the calculation of real estate performance. The Real Estate Information Standards (1995) furnished performance measurement calculation standards through the presentation of industry-standard formulas and related guidelines. The release of the NCREIF Performance Returns Workbook followed in 1996, providing more detail and practical guidance on the calculation process, including explanations of the inputs to the standard formulas, sample Excel spreadsheets for performing the required calculations, data sources and suggested calculation techniques for various situations.
The Calculation of Real Estate Performance Returns Seminar steers the participant through the Workbook. The Workbook provides the user with spreadsheet templates and explanatory narrative; the Seminar is a hands-on journey through those templates, with detailed discussions of the narrative and the spreadsheets.
Sitting with your laptop and working with Excel spreadsheet templates, the class reviews the inputs, formulas and calculations that generate the Investment-Level and Property-Level returns used in today's institutional real estate environment. Each formula is examined and the inputs reviewed. The linking process that produces multi-period returns is explained and demonstrated. Finally, recommended guidance for a variety of return scenarios is presented and discussed.
The last hour of the seminar will include advanced Excel techniques to make your work more efficient, more fun and more impressive. These tips and tricks will help you analyze the volumes of returns and data that you work with everyday. Specifically, we will learn ways to organize your spreadsheets, Excel formulas for calculating returns and pivot tables and pivot charts for slicing, dicing and viewing the data. Excel is a powerful tool, so let's learn how to leverage it to make our jobs more creative and more productive.