Aviva Investors today announced the launch of the Aviva Investors Global Real Estate Fund of Funds to meet the growing demand from clients for efficient access to global unlisted real estate assets.
Aviva Investors today announced the launch of the Aviva Investors Global Real Estate Fund of Funds to meet the growing demand from clients for efficient access to global unlisted real estate assets.
The fund, designed specifically for UK pension schemes, will invest in the principal and mature markets of Europe (ex-UK), North America and Asia Pacific, aiming to generate an internal rate of return of 10% per annum, net of expenses over rolling three year periods. The fund is open-ended and will create a diversified global portfolio by adopting various investment approaches.
Catriona Allen is the dedicated fund manager for the fund and she will draw on the wider resources of Aviva Investors Global Real Estate Multi-Manager team working closely with the local teams based in London, New York and Singapore to source and asset manage the underlying investments.
The fund has been launched with commitment from an existing external investor, demonstrating the keen interest from UK pension funds to access the global property markets. Clients will be able to gain access to global real estate, even with small to medium sized commitments and will also to be able to match this investment with an exposure to UK real estate through the complementary UK fund of funds managed by the same team.
John Gellatly, head of real estate multi-manager – Europe, said: “Historically, pension schemes have adopted a global approach to equity and bonds and they are now beginning to do the same for real estate. Studies show that the majority of real estate allocations are often concentrated in an investor’s home market, with the result that broader return and diversification opportunities are ignored.
"However, by looking further afield, pension schemes are able to access a broad range of markets that offer different risk and return prospects and varying investment styles, allowing them to exploit opportunities which are not available in their home markets.
“Local authorities are currently limited under the restrictions applied by local government pension schemes regulations which impact not only their private equity positions but also their unlisted property exposure which tends to be held via limited partnerships structures. This fund is structured as a Jersey Property Unit Trust and is therefore not constrained under these regulations.
“At present, we see a lot of opportunities for investments in real estate. Asia Pacific is currently showing signs of a strong recovery and is capable of delivering good income growth, while in continental Europe and the US we see a number of significant opportunities for growth. Real estate also has a low correlation with other mainstream asset classes offering diversification that allows pension schemes to increase their risk-adjusted return expectations and also improve the diversity of their portfolios.”
Headed by Nick Mansley, global director of multi-manager at Aviva Investors, the global real estate multi-manager team compromises 20 investment professionals. The team manages over £5 billion of indirect assets for a range of institutional clients through both segregated accounts as well as pooled fund-of-fund products.
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For more information contact:
Kaidee Sibborn
Corporate Affairs
+44 (0)20 7809 8759
Notes to editors:
This press release is distributed by Aviva Investors Global Services Limited of No.1 Poultry, London, EC2R 8EJ.
This press release is not available for general distribution in, from or into the United Kingdom because the Aviva Investors Global Real Estate Fund of Funds is an unregulated collective investment scheme whose promotion is restricted by sections 238 and 240 of the Financial Services and Markets Act 2000.
When distributed in, from or into the United Kingdom, the content of this press release is only intended for persons having professional experience of investing in unregulated schemes, high net worth companies, partnerships, associations or trusts and personnel of any of the foregoing having professional experience of investing in unregulated schemes (each within the Financial Services and Markets Act 2000 (Promotion of Collective Investment Schemes) (Exemptions) Order 2001), persons outside the European Economic Area receiving it electronically, persons outside the United Kingdom receiving it non-electronically and any other persons to whom it may be communicated lawfully.
No other person should act or rely on it. Other persons distributing the content of this press release in, from or into the United Kingdom must satisfy themselves that it is lawful to do so.
The value of an investment in the Aviva Investors Global Real Estate Fund of Funds and any income from it can go down as well as up. You may not get back the original amount invested.
The opinions expressed are based on the views of Aviva Investors Global Services Limited (Aviva Investors) and should not be relied upon as indicating any guarantee of return from an investment managed by Aviva Investors nor as advice of any nature.
Aviva Investors
Aviva Investors is the global asset management business of Aviva plc. The business delivers investment management solutions, services and client-driven performance to clients worldwide. Aviva Investors operates in 14 countries in Asia Pacific, Europe, North America and the United Kingdom with assets under management of almost £260 billion at 31 December 2010.
Aviva plc
Aviva is a leading provider of life and pension products in Europe (including the UK) with substantial positions in other markets around the world, making it the world's sixth largest insurance group based on gross worldwide premiums at 31 December 2009.
Aviva's principal business activities are long-term savings, fund management and general insurance, with worldwide total sales* of £47.1 billion and funds under management of £402 billion at 31 December 2010.
* Based on 2010 published life and pensions PVNBP on an MCEV basis, total investment sales and general insurance and health net written premiums, including share of associates' premiums.