UK pension schemes are actively looking to increase their exposure to property as the market continues to show signs of recovery, according to a survey by Aberdeen Asset Management.
More than one third of schemes surveyed that don't already invest in property are considering including it in their portfolios.
Of those that already have some exposure to property, 36 per cent also said they would possibly increase their weighting, while 57 per cent said they would be maintaining their current exposure.
Andrew Smith, group head of property at AAM, said the renewed interest in the sector came as investors increasingly looked to diversify their equity and fixed income exposure.
"The recovery of the UK property market continues, with strong investment demand continuing to drive a rise in capital values," he said. "A pronounced lack of new development is also helping London office rental values to stabilise more quickly than in previous downturns."
He added that property's role as an inflation hedge was also attractive, given the prospects for inflation rising in the medium term.
Those pension schemes that are not looking to invest in property cited the lack of liquidity and perceived risks.
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