The ABC of Property Investments spelled out for Pension Funds.
08 March 2012
A new guide looking at real estate is being launched today (Thursday) at the National Association of Pension Funds’ (NAPF) Investment Conference in Edinburgh.
The NAPF Property investments made simple was written and sponsored by Legal & General Property. It has been designed to help pension funds get a better understanding of property at a time when they are increasingly seeking investments that offer long-term stability.
Property can inject diversification into a pension fund portfolio and, as a result, can reduce risk levels. The characteristics of property investments are also well suited to the long-term nature of pension funds.
The guide looks at the key elements and considerations of a property investment and how this asset class fits into a pension fund portfolio. It discusses both traditional and the more recent routes of property investment.
NAPF Chief Executive Joanne Segars said:
“The weak global economy and the difficult investment climate are pushing pension funds to find different types of investments that can help secure better returns."
“Property is one of the forms of investment that is increasingly being looked at. It can make a strong contribution to both the risk and return profile of a pension fund. So it is important that pension funds understand it to make informed decisions on whether they will invest in it and, if so, how they will do it."
“We hope that this simple guide will play an important role in helping pension trustees and managers understand this increasingly important asset class and we regard it as an important new addition to the NAPF’s popular ‘made simple’ series.”
Dan Batterton, Business Development Manager at Legal & General Property, added:
“As economic uncertainty remains, the relative stability offered by a secure income stream, such as property, is increasingly attractive, particularly among pension fund investors, wishing to diversify their portfolios.
“As one of the UK’s leading property fund managers, we have developed this guide to help potential real estate investors get a better understanding of the asset class and provide the tools to start to make informed decisions regarding property investments.”
The guide (hard copy) costs £18 for NAPF members and £35 for non-members. It can be ordered online at www.napf.co.uk.
Notes to editors
1. The Property investments made simple will be launched at the NAPF Investment Conference in Edinburgh (NAPF stand) on Thursday 8 March at 17.15.
2. Other recent made simple guides include Alternative Investments made simple, Foreign Exchange made simple, Hedge Funds made simple, Stewardship made simple and Derivatives made simple.
3. The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,200 pension schemes with some 15 million members and assets of around £800 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.
4. LEGAL & GENERAL PROPERTY: Legal & General Property (LGP) is a wholly-owned subsidiary of Legal & General Investment Management (LGIM), one of Europe’s largest institutional asset managers and a major global investor. LGIM manages approximately £347bn of assets on behalf of more than 3,300 clients (30 September 2011) and provides products and solutions spanning all asset classes. LGP is the third largest institutional property fund manager in the UK, managing or co-managing 17 separate funds or vehicles and two segregated mandates with an aggregate asset value of over £10.4bn as at 30 September 2011.
These funds include:
Specialist Pooled Funds
The Leisure Fund Limited Partnership; Industrial Property Investment Fund; UK Logistics Fund; Arlington Business Parks Partnership; and the English Cities Fund
Single Asset Vehicles
Bracknell Regeneration Partnership; Central Saint Giles Partnership; Performance Retail Limited Partnership and Warrington Retail Limited Partnership
Life Fund; Linked Pensions; Linked Life; Managed Fund; Property Unit Trust; UK Property Income Fund; LPI Income Property Fund and the Hybrid Property Fund.
LGP’s UK-focused fund management platform has built and retained a strong track record of out-performance across the sector. Owing to its size, diversity and penetration, it benefits from best in class banking and property industry contacts which, along with its wealth of in-house skill and expertise, have enabled it to continue to attract and secure high quality market opportunities. Taking a client-centric approach, the business places the highest priority upon integrity and transparency, leveraging upon the significant resources provided by the wider LGIM platform. Sector specialists cover each sphere of the market and are supported by LGP’s market-leading research capability.
LGP’s sector specialisms cross all facets of the real estate market. In particular, the Company has a major development platform, responsible for delivering the West End office market’s latest landmark, Central Saint Giles, and currently involved in developing its high profile Covent Garden scheme, Agar Street, as well as significant town-centre retail regeneration projects, including Bracknell, Northampton and Eastbourne.
Paul Platt, Head of Media and PR, NAPF, 020 7601 1717 or 07917 506 683, firstname.lastname@example.org
Christian Zarro, Press Officer, NAPF, 020 7601 1718 or 07825 171 446, Christian.email@example.com
For more information please contact:
PR Manager, Legal & General Capital and Real Assets, LGIM (Property, infrastructure and alternative finance)
t: + 44 (0) 203 124 2777
m: + 44 (0) 7718 395 279
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