A modern portfolio theory approach to asset management in the listed South African property market
Date
2010-07-15T12:17:07Z
Authors
Rodrigues, Albertino
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Abstract
This report focuses on a Modern Portfolio Theory (MPT) approach to Asset
Management in the Listed South African Property Market. The research was
undertaken to fill the gap in property research on Modern Portfolio Theory in
South Africa. The research set out to calculate the optimal portfolio weighting
from historical data (1995 – 2006) from Investment Property Databank (IPD) by
using a portfolio optimiser spreadsheet on Excel’s solver application. Interviews
with Asset Managers were carried out to find out how many of them use MPT as
a strategic portfolio tool when managing a property portfolio. The research
proved whether MPT is used by Asset Managers in South Africa, as well as, how
MPT should be used as strategic diversification tool and why it should be used