Aviva Investors has launched a global real estate fund of funds aimed at UK pension schemes.
The fund, called Aviva Investors Global Real Estate Fund of Funds, will invest in the principal and mature markets of Europe (not including the UK), North America and Asia Pacific.
It will aim to generate an internal rate of return of 10% a year, net of expenses, over rolling three-year periods. The fund is open-ended.
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.”
nathan.cross@estatesgazette.com
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