UK’s biggest selling retail fund breaks £1billion barrier
04 January 2007
Standard Life Investments, one of the largest property fund managers in Europe, today announced that its Select Property Fund has broken the £1bn barrier in less than 15 months since its launch on 13 October 2005 ,1 making it the fastest growing mutual fund in the UK during the first 11 months of 2006.2
The performance of the fund has been very strong, with the retail accumulation unit price rising 44.2%3 since launch. This is against a total return target of CPI +5% p.a. over a rolling three-year period.
Barry MacLennan, Investment Director – Mutual Funds & Life Funds, Standard Life Investments, said:
“The UK retail market is one of the most competitive in the world, so it’s a real achievement that the Select Property Fund has been the best selling fund for the greater part of 2006. Fund inflows remain strong as investors continue to seek property exposure offering diversification on a global scale. Demand has also been helped in no small way by impressive performance since launch. The Fund has benefited from both strong stock selection and broad geographical and sector diversification, enabling it to return an outstanding 44.2%.
“Over the last few months we have increased exposure to US stocks generally, specifically East Coast financial and business offices. Supply of property, in the form of vacancy rates and the pace of development will continue to be the key drivers which affect returns. In both these respects Europe offers interesting prospects particularly in the office and distribution warehousing sectors and we will be seeking opportunities for direct and listed investment in that market.”
The first of its kind in the marketplace, the Select Property Fund offers both institutional and retail investors access to UK and international property markets in North America, Europe and across Asia Pacific. The fund accesses commercial property markets via direct investment, unquoted specialist property products and stock exchange listed property vehicles globally.
Following changes in UK legislation in December 2005, the fund qualifies for ISA investment and PEP transfers. From launch, the fund has also been available via the appropriate wrapper solutions to Life and Pension clients and for direct investment in both the retail and institutional markets.
Structured as an authorised property unit trust, the Select Property Fund aims to provide investors with a consistent level of income, while generating capital appreciation over the longer term.
1. Funds under management of £1.05bn as at 02.01.07.
2. Source: FERI FMI, 01.01.06 to 30.11.06 (Data to 31.12.06 unavailable until 02.07)
3. Source: Lipper Hindsight (to close 02.01.07, in sterling terms, bid-to-bid basis).