ISA Portfolio View 2023
The art and science of portfolio construction matters most when market conditions change suddenly. This has never been truer than in the past few years, which saw major pivots in capital markets as policymakers shifted from trying to stimulate the economy at the start of the pandemic, to applying the breaks to prevent inflation running out of control. The speed and unpredictability of these changes highlights the importance of planning ahead by thinking carefully about how to create portfolios that can be expected to be resilient. Foundational concepts of portfolio management such as diversification and risk management should be considered alongside an investor’s objectives and values to devise a strategy for their portfolio. It is with these factors in mind that we release first edition of LaSalle’s ISA Portfolio View, which seeks to answer five foundational questions about real estate: Why real estate lays out the case for property exposure in a multi-asset context? Why global considers the benefits of expanding horizons beyond an investor’s domestic market? Why be sector smart tries to make sense of the recent changes in relative sector performance with an eye to building resilient portfolios? Why be quadrant smart addresses the interplay among the “four quadrants” of real estate? Why manage risk explores the importance of—and our approach to—managing investment risk? In many ways the ISA Portfolio View is the continuation of a longstanding strand of LaSalle’s analysis that would typically form the latter chapters of the Investment Strategy Annual. In this new standalone edition, we draw from a deep pool of experts from around the firm, acknowledging the interconnectedness of real estate opportunities: across borders, across sectors, and across quadrants. We welcome your questions and feedback. Contributors: Brian Klinksiek Global Head of Research and Strategy Eduardo Gorab Head of Global Portfolio Research and Strategy