Property fund manager Standard Life Investments has announced that its Select Property Fund has grown to £780 million in the 12 months since its launch on 13 October 2005, making it one of the fastest growing retail funds launched in the UK over that period.
The performance of the fund has been very strong, with the accumulation units price rising 30.92%3 in just one year. This is against a total return target of CPI +5% p.a. over a rolling three-year period.
Barry MacLennan, Investment Director Mutual Funds & Life Funds, Standard Life Investments, said: "We originally forecast target sales of £350 million for the fund's first year, so I'm naturally delighted that we've managed to more than double that by the time of its first anniversary. This sales growth has been matched by impressive performance since launch.
"The outstanding success of this fund has been very much a team effort. Manager, Andrew Jackson, and deputy manager, Svitlana Gubriy, have been extremely effective at maximising returns while minimising risk. They have also been aided in no small part by our property research team in Edinburgh and the expertise of key members of our equity teams across our global office network. This cross-discipline approach lies at the heart of the fund's success.
"There continues to be exciting growth opportunities in the international property markets and as a result we intend extending our coverage of direct property markets beyond the UK and Europe. This will enable us to provide investors with exposure to bricks and mortar assets on a global basis, thereby further strengthening the Select Property Fund's competitive position."
The first of its kind in the marketplace, the Select Property Fund offers both institutional and retail investors access to UK and international property markets in North America, Europe and across Asia Pacific. The fund accesses commercial property markets via direct investment, unquoted specialist property products and stock exchange listed property vehicles globally.
Following changes in UK legislation in December 2005, the fund now qualifies for ISA investment and PEP transfers. From launch, the fund has also been available via the appropriate wrapper solutions to Life and Pension clients and for direct investment in both the retail and institutional markets.
Structured as an authorised property unit trust, the Select Property Fund aims to provide investors with a consistent level of income, while generating capital appreciation over the longer term.
Source: Standard Life Investments