Friday, July 1, 2011

Institutional Asset Management Provides A Variety of Benefits ...

Many people have questions about the benefits of institutional asset management in the context of real estate investment trusts (REIT).

Here are some benefits to choosing a management solution provided by REITs:

Regulated transparency
REITs are overseen by extremely strict regulations, and must comply with reporting standards in across international jurisdictions.

Shields from liability
Many landlords or other direct owners of real estate are hindered by personal liability when leasing out a property. These liabilities are legal, as well as financial. The REIT structure avoids this.

Real estate ownership
Real estate is often considered to be a stable means for building long-term wealth. Its value is easy to assess, and because land is limited, it?s easier to determine future growth opportunities.

Diversification
REITs allow ordinary investor to participate in larger commercial products, such as shopping malls, hotels, and industrial parks. Besides providing for higher ROI, this diversification also helps bring greater stability and security to an investment.

Operating capital
This kind of institutional asset management reduces risk in another important way: it provides capital that helps the investment weather economic downturns.

Efficient and synergistic
It?s generally recognized that larger properties can be managed more efficiently than can be smaller ones. As an investment device, REITs allow for efficiencies and economies of scale largely unavailable to other tools and vehicles.

Independently assessed
Portfolios in this asset class are regularly assessed and reported on. There is no direct dependence on wildly fluctuating markets, and monthly performance reports make it easier to track how your investment is doing.

Liquidity
Because institutional asset management tools like REITs offer redemption rights to unitholders, there is no worry of being locked in when there is a requirement for liquidity.

Flexibility
This investment vehicle allows participation at every level of commitment, as well as by any kind of participant, from individuals to corporations.

Source: http://pennystocks-fordummies.org/institutional-asset-management-provides-a-variety-of-benefits/

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