“Ryan Kuruliak, a vice president with Proteus Performance Management in Toronto, says that of his clients who invest in real estate, the majority use pooled (private) vehicles. “We have seen some concerns from plan sponsors regarding the drying up of liquidity in some investment products which have direct holdings of real estate,” he says. “On the other hand, although publicly listed real estate may be more transparent and liquid in comparison, it also has a high correlation to the overall equity market, which can diminish its diversification benefits.” He advises that pension plan sponsors and endowment and foundation investment committees considering real estate investment become educated about the unique characteristics and constraints of the asset class, including the fundamental difference between public and private real estate. “

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