Abstract

This case presents the issues facing Henderson Global Investors as it restructured three closed-end commingled real estate funds. This case provides the instructor with the opportunity to cover a variety of topics: a review of modern portfolio theory, including how to calculate the basic statistics that underlie the theory; an historical perspective on asset class returns, examining how stocks, bonds, and real estate performed as asset classes during the last twenty-five years of the twentieth century; an introduction to institutional investments in real estate, including why institutional investors should add real estate to an existing stock-and-bond portfolio, and what investment vehicles are available to accomplish this.

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