Episode 386: RCLCO Fund Advisors Says U.S. Institutional Investors Under-Allocating to REITs
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William Maher, director of strategy and research at RCLCO Fund Advisors (RFA), was a guest on Nareit\\u2019s REIT Report podcast.
RFA\\u2019s clients include some of the larger public pension funds, and increasingly non-U.S. investors.
Maher said that most U.S. institutional investors today allocate less than 10% of their real estate allocation to REITs. \\u201cI think that indicates a big underweight that they're probably not aware of,\\u201d Maher said. He added that RFA\\u2019s investor clients continue to want greater exposure to a broader range of property types and will continue to look to REITs to provide that access.
Mid-size and larger institutions should have a \\u201cpermanent long-term position in REITs for diversification, market knowledge, [and] exposure to property types that are difficult to access in the private markets,\\u201d he said.