The AEW UK Real Return Fund is an open ended, core-style property authorised investment fund with a total real return target of 4% per annum, managed by Ian Mason.
The strategy will look at investing in all sectors, with no benchmark. Sectors are likely to include ‘alternatives’ such as housing, leisure, healthcare, hotels and social infrastructure, blended with opportunities in traditional property markets.
“We are pleased to be supporting this new launch and strategy which matches the return objectives and liability matching requirements of many of our clients who, as mature pensions schemes, are seeking long term relatively stable returns,” said John Gellatly, AVIVA Investors’ head of EMEA GIRE. “We are also pleased to be backing AEW and Ian, who have a long and successful track record investing into a range of alternative property types.”
“So far the reaction from potential investors has been very supportive and we already have terms agreed for an additional £20m from a major UK pension fund, Mason said. “The fund is challenging the way investors can think about property as a real asset and match for liabilities. We have found it very rewarding to partner with AVIVA on this new strategy. “We will aim to deliver better risk adjusted, liability focused returns with cash flow and income growth central to strategy.
