- December 1, 2015: Vol. 2, Number 12

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Daily Pricing: New index represents big step toward inclusion of private real estate in broader array of investment portfolios

by Peter Steil and John Ehli

In August of this year, the National Council of Real Estate Investment Fiduciaries (NCREIF) introduced the Daily Priced NCREIF Fund Index (NFI-DP), the first daily pricing index for private real estate. The launch of this index represented a major step forward in facilitating the inclusion of private real estate investment options into a broader array of investment portfolios, which historically were largely unavailable to high-net-worth advisers and defined contribution plan sponsors. With the NFI-DP, these investors now have access to an index with daily data points and monthly reporting on the overall performance and valuation of this unique set of funds, which is more consistent with these investors’ needs.

Private real estate has a number of characteristics that make it an attractive asset class for many investors, which defined benefit/corporate and endowment and foundation investors have been enjoying for decades. Real estate can add diversification, reduce volatilit

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