Pension funds 'should diversify property investments'
F&C Asset Management has said that trustees of pension funds in the UK should take advantage of the growing property market in Europe and diversify property investments by making more use of real estate securities.
The company noted that some trustees had reservations regarding foreign property allocations, either through real estate securities or directly, but urged serious consideration regarding such an investment at present.
Simon Males, director of institutional funds at the firm, said that while the UK property market has provided strong returns and diversity in the past, some investors were now looking to advances in Europe with regards to both financial performance and assortment.
"It is much easier today for UK pension schemes to take advantage of potential growth opportunities in the rest of Europe as the whole property fund management industry becomes more globalised."
Fidelity International recently predicted that the introduction of real estate investment trusts (REITs) into the UK from January 2007 would result in more property being transferred from consumers, businesses and pension funds into REITs.
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