Arlington Securities has won a 10 million mandate from the Members of European Parliament (MEP) Pension Fund. It is the first time it has invested in property. The Fund has previously only invested in equities and bonds.
The money will be invested in Arlington's Eurozone Fund of Funds which was launched in July 2006. The MEP Pension Fund is based in Luxembourg.
Karin van der Sluijs, Manager of the Arlington Eurozone Fund of Funds comments: "The fund of funds approach is ideal for the MEP Pension Fund as it enables it to get a diversified exposure to the property market across the eurozone which it wouldn't get through direct investment."
Richard Balfe, Chairman of the MEP Pension Fund comments: "This investment reflects our decision to continue to increase the diversification within our portfolio and particularly to reduce the investment in bonds, where yields are currently very low. We were attracted to property because it has a similarly long term nature to bonds but has the potential to produce much higher returns. We have chosen to invest in a fund of funds as it enables us to get a more diversified exposure to the property market than through other methods. We chose Arlington's Eurozone Fund of Funds because of its strong research driven approach coupled with Arlington's presence in the major European markets."
Source: Arlington Securities