The performance and significance of Islamic REITs in a mixed-asset portfolio

Islamic real estate investment trusts (i-reits) have been established to enhance the islamic capital market. almost 10 years of establishment of i-reits,it is interesting to study the performance of this islamic property investment vehicle because it is a potential and unique asset class that not fully explored. this paper examines the risk-adjusted performance analysis and correlation analysis between i-reits in a mixed asset portfolio. the time period of study is from november 2008 to december 2014. i-reits were compare in a mixed asset portfolio consists of shares and bonds. the results show that i-reits outperform both shares market and bonds market. while i-reits give high diversification benefits for the share and bond investors with low correlation between i-reits,shares and bonds. © 2015 penerbit utm press. all rights reserved.