Wednesday, 30 July 2014
Standard Life Investments promotes its £420 mln Global Real Estate Fund (EU)
Global investment manager, Standard Life Investments has relaunched its £420 mln (approx. €530 mln) Select Property Fund as the Standard Life Investments Global Real Estate Fund. A unique investment solution in the UK and European mutual fund market, the Fund will continue to be led by Andrew Jackson, Head of Wholesale and Listed Real Estate, and Svitlana Gubriy as deputy manager, with support from a team of portfolio managers and real estate securities analysts.
The Fund’s new strategy allows for investment predominantly in real estate markets in both direct and listed real estate securities, including real estate investment trusts (REITs), on a global basis. It aims to hold a higher and more persistent investment in direct real estate assets, seeking a range of 50%-80% of the Fund’s overall value in this area. It is intended that this will deliver a more stable mix of assets, lower volatility in the Fund’s price movements and the potential for a higher income yield.
Reflecting the new bias of the Fund towards direct real estate markets, the benchmark of the Fund will change from the IMA Property Sector, which is increasingly populated by real estate securities only funds, to a more representative IPD Direct/MSCI World Real Estate Custom Index2, which will include both direct and listed real estate assets. In addition, the Fund will no longer hedge its foreign currency exposure.
Andrew Jackson, Head of Wholesale & Listed Real Estate, Standard life Investments, said; “We engaged with clients over a period of time and conducted extensive research across a range of distribution channels into how this Fund might adapt to best support the needs of our investors going forward. We believe this positive realignment of the Fund will enable us to take ongoing but increased advantage of the tangible benefits of direct real estate investment alongside the enhanced accessibility of real estate securities.