FUND AIM
The Fund aims to redefine property as a real asset, by providing longer term inflation protection and capital preservation to better match the liabilities of investors.
The Fund has a total real return performance target; this aligns the objectives of the fund management team with the liabilities of pensions savers, far better than traditional core funds that simply adopt a relative return MSCI benchmark. It will also access a wider UK investible universe of traditional and alternative sectors such as healthcare, leisure, car parks, social infrastructure and student housing, aiming to generate greater diversification and lower volatility.
In addition, constraints have been adopted to control risks beyond relative weightings to “shops, offices and industrial”. By seeking to optimise the benefits of property as a real asset the portfolio should provide better longer term inflation protection and capital preservation.
How will the AEW UK Real Return Fund be different?
- The Fund will not chase the Peer Group (MSCI) benchmark relative returns, like many core funds.
- The Fund will embrace all real estate sectors that reflect economic themes and offer inflation-like attributes.
- The Fund is prohibited from taking traditional risks such as speculative development and leverage.
- The Fund is not a long-lease or annuity-style fund
- we know from experience that property is not a fixed income asset
- strategy and property skills create sustainable income streams and preserve capital, not long leases
Launch Date
Q1 2016
Fund Structure
An FCA authorised, open ended, core-style property fund. PAIF QIS. Eligible investors: UK and Overseas Corporate Pension Funds, Local Authorities, Charities, SIPPS, UK and Overseas Corporates and Wealth Managers.
Property Portfolio
Please visit Property Portfolio to view all the Properties.
Real Return Fund Quarterly Investor Reports
Click here to access Real Return Fund Share price information
