Standard Life Investments' (SLI) Select Property fund has broken the £1bn barrier in less than 15 mo...
Standard Life Investments' (SLI) Select Property fund has broken the £1bn barrier in less than 15 months since its launch on 13 October 2005.
The performance of the fund has been very strong, said the group, with the retail accumulation unit price rising 44.2% since launch, against a total return target of CPI +5% pa over a rolling three-year period.
Barry MacLennan, investment director - mutual funds & life funds, at the group, said: "Fund inflows remain strong as investors continue to seek property exposure offering diversification on a global scale.
"Demand has also been helped by impressive performance since launch. The fund has benefited from strong stock selection and broad geographical and sector diversification.
"Over the last few months we have increased exposure to US stocks generally, specifically East Coast financial and business offices. Supply of property, in the form of vacancy rates and the pace of development will continue to be the key drivers that affect returns.
"In both these respects Europe offers interesting prospects particularly in the office and distribution warehousing sectors and we will be seeking opportunities for direct and listed investment in that market."
Meanwhile, SLI has launched two Global Reit funds for both the UK and European markets. Both funds will be identical, but one will be structured as a UK Oeic and the other will be part of the company's Luxembourg-domiciled Sicav range.
The products will be managed by Andrew Jackson who will be supported by Svitlana Gubriy as deputy manager.
They will aim to outperform the FTSE EPRA/NAREIT Global index by 2% per annum.
Alex Watt, managing director of property investments at SLI, said: "The funds will take a largely unconstrained approach to regional asset allocation.
"This ensures we can invest in markets and property sectors where the best investment opportunities exist, rather than being tied to one region or market.
"Stock selection can be as diversified as a Singapore property development company to a German airport operation and development firm.
"The superior investment freedom afforded by such an approach means both funds offer the best balance of risk and reward. It also helps tackle a key issue for property investors - how to efficiently convert large cash holdings earmarked for property investment and avoid low relative returns, which can dilute overall investment performance." key points
Standard Life Property fund breaks £1bn in 15 months
Retail accumulation unit price has risen 44.2%
Group has also launched two global Reit funds
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