REIT Performance From Real Estate Mutual Fund Holdings

Abstract

The performance of REITs may determine the level of holdings in real estate mutual funds. My study combines the process of asset composition of REITs with the REITs’ contribution in real estate mutual fund portfolios. There is a 2% to 3% increase in REIT holdings when the dividend yield increases by 1%. The relationship is strongest during the tech bubble period. This will give the investment advisor a look into management of real estate related assets in their respective portfolios.