Pension schemes diversify into alternative property

HospitalBlackRock says six pension schemes have allocated to a new fund that invests in alternative property assets in the UK, such as primary healthcare, student accommodation and housing associations. The company developed the fund to answer institutional investors' needs for long-term inflation-linked income streams. The fund is open only to institutions and targets a 5% distribution yield with monthly distributions. “Both traditional and non-traditional real estate can provide pension schemes with alternative sources of long-dated income, but we see alternative property assets coming more into vogue,” says Marcus Sperber, head of real estate for BlackRock in Europe, the Middle East and Africa. BlackRock says the UK Long Lease Property Fund has attracted £250 million (€290 million) and invested £100 million of it in property assets with an average lease term of more than 20 years. The fund invests in traditional commercial property such as supermarkets and offices as well as alternatives. ©2013 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.