Munich Personal RePEc Archive

The Expenses of Real Estate Funds in a Small Market: Their Determinants

Alves, Paulo (2016): The Expenses of Real Estate Funds in a Small Market: Their Determinants. Published in: Investment Management and Financial Innovations (2015)

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Abstract

This paper analyses the determinants of expenses for Portuguese real estate funds from 2007 to 2012 and is a pioneer study on the determinants of expenses concerning real estate funds. Closed-end and open-end real estate funds benefit from economies of scale. However, the most important result of this study concerns the fiscal policy implemented by the Portuguese authorities during the 1980s. Closed-end funds flourished by capturing tax benefits, even in the event that risk was not rewarded by return. Investors created financial instruments in which to allocate their real assets, instead of holding them individually.

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