The £420m Select Property Fund has been renamed as the Standard Life Investments Global Real Estate Fund to go along with the new approach. It will continue to be managed by Andrew Jackson, and Svitlana Gubriy.
The rebadged fund aims to hold a ‘higher and more persistent’ direct real estate investments, with a target of 50%-80% of the total value.
The reason for the change according to Standard Life is that it will allow the fund to deliver more stability, lower volatility and greater potential for higher income yield.
The fund’s benchmark is being changed from the IMA Property Sector to the IPD Direct/MSCI World Real Estate Custom Index2, which Standard Life says is ‘more representative’ with the new direct investment emphasis in play.
“We believe this positive realignment of the Fund will enable us to take ongoing but increased advantage of the tangible benefits of direct real estate investment alongside the enhanced accessibility of real estate securities,” said Andrew Jackson, head of wholesale and listed real estate.
“Following the global financial crisis and subsequent recession, many economies are now at different stages of recovery and, as a result, many real estate markets around the world are becoming more attractive,” he added.
Jackson said the fund will now have greater flexibility to move between different real estate markets around the world.
