More than 80% of the global securities property fund launched by Skandia in October last year is n...
More than 80% of the global securities property fund launched by Skandia in October last year is now in Real Estate Investment Trusts (Reits).
Todd Canter, managing director of LaSalle Investment Management, which manages the fund, said he expected this to grow as more countries implemented them.
He said: "Hong Kong introduced them in November last year and the UK and Germany will follow in 2007. Asia is likely to see the most rapid growth, followed by Europe.
"Reits are proving popular with investors, both because of their distribution policy and their transparency."
However, he said the fund would continue to avoid development companies.
Canter said: "Our benchmark is the UBS Global Property Investors index, which stipulates that 75% of revenues must come from underlying real estate.
"Secondly, LaSalle estimates development presents twice the risk of real estate investment, but without the corresponding increase in reward. We are very focused on superior, risk-adjusted returns."
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