As in other investment sectors, closed-ended funds--to which Finnish PREOCs can be classified into, too--typically trade at a discount value when compared to the value of the assets in their portfolio.
For the 1990s, the P/NAV ratio of the Finnish PREOCs remained around 40%, but showed much volatility.
As suggested by the literature, the NAV discounts of the Finnish PREOCs also vary within the sector.
Figure 4 presents the performance of the PREOCs in the studied period.
The inter-asset correlation of returns among the PREOCs is everything between 0 and 0.
Today, there are five PREOCs in Finland, all focusing their investments in commercial real estate.
As investments, PREOCs have provided fairly moderate returns, with slightly lower volatility than the OMX Helsinki stock index.
Despite its return and diversification characteristics, Finnish PREOCs have not been able to attract much capital from households or other investors with restricted access to direct real estate markets.