Now's the time for more real estate investing in your DC plans

Real estate investments by Defined Contribution (DC) plans are on the rise, according to a new survey of asset managers. The report, by the Defined Contribution Real Estate Council (DCREC), NAREIM (a real estate investment association), and Ferguson Partners, found that with rising inflation, real estate is seen as an attractive alternative to other investments.

The 2022 Survey included 35 real estate investment management firms representing around $80 billion in investments. The report said managers, consultants, and plan sponsors have been increasingly looking at real estate investments to diversify portfolios and protect against inflation.

The findings support a January report from J.P. Morgan that found a “dramatic revival” in investments by DC plans. “After a year of rapid economic expansion fueled by historic levels of fiscal stimulus and loose monetary policy, inflation is surging in developed markets,” said the J.P. Morgan Asset Management analysis. “Global investors, alert to the threat of rising interest rates, are increasingly focused on real assets as alternative sources of yield and inflation protection.”