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There are other risks that need to be addressed as well and in the case of unlisted property liquidity risk would have to be assessed as well.
Risk as the Central Thesis
The reference portfolio model of allocating assets is becoming an increasingly common method of investing and large global pensions funds, including Singapore’s GIC and the Canada Pension Plan Investment Board, are amongst its disciples. One of the more recent funds to embrace this idea is the Norway’s Government Pension Fund
Global, which started to transition in 2014, after a review suggested it needed to diversify its asset allocation more. In short, the benefits of this model over a more traditional asset allocation approach include the centralisation of risk as a core element in investment decisions, liberating investment managers from