A new organization created by real estate money managers is seeking to educate defined contribution plan executives about the role of real estate investments in DC plan menus.
We are trying to improve the education and establish common practices for investing in direct real estate and real estate equities by DC plans, said David Skinner, co-president of the New York-based Defined Contribution Real Estate Council.
Real estate investments are common components of defined benefit plans, and as DC plans become more like DB plans, his group wants to demonstrate how real estate investments can help diversify a DC investment menu and reduce volatility, Mr. Skinner said.
Mr. Skinner is principal and defined contribution practice leader for Prudential Real Estate Investors, a unit of Prudential Financial Inc., Newark, N.J. Prudential is one of 10 founding members of the council.
Mr. Skinner said members of the council began meeting informally about 18 months ago. The council doesn't lobby and doesn't anticipate doing so, Mr. Skinner said. He added the council also plans to conduct original research and provide educational materials to plan executives on real estate investing. ROBERT STEYER