Sesame warning on global REITs

In the wake of the findings, Sesame, which conducted the study, has warned its advisers not to place REITs in the same category as direct property funds when looking for diversification in client portfolios. Mark Peters, head of research for the network, said that while REITs had some benefits over direct property such as efficient valuation and liquidity, they were more highly volatile and bore a far stronger correlation to equities. "Advisers should not exaggerate the degree of potential diversification a global REITs fund provides to a largely equity-based portfolio," he said. "...