NCREIF (unsmoothed) Vs NCREIF (Without correction)

CFA Level III
#1

Is there any difference?

thanks!

#2

I would say these are the same.

#3

FinNinja: Pls check P. No 123, vol 5, Ques 27

Before reading this, i also thought it to be same. Now, I am trying to why there could be a difference.

#4

I keep forgetting this, the NCREIF (uncorrected) is the smoothed version, since it is valued based on appraisals. Since appraisals are done infrequently it’s like having stale price data in your portfolio. The corrected version is the Unsmoothed that removes the “staleness” of the values.

I remember reading this and making a mental note a while ago, I guess it didn’t stick.

#5

^mental accounting? :wink: jk