10/01/2007

Standard Life Investments Launches Two Global Reit Funds

Standard Life Investments, one of the largest property fund managers in Europe, today announced the launch of two innovative, new global property funds aimed at institutional and retail investors in the UK and Europe.

The Global REIT Fund (OEIC) - for UK investors - and the Global REIT Focus Fund (SICAV) – primarily aimed at the European markets - will invest largely in Real Estate Investment Trusts (REITs) or securities and companies principally engaged in real estate activities on a global basis. The funds will aim to maximise total return from income and capital growth over the longer term. By investing in indirect property, both funds offer unique access to global property markets and the ability to diversify investors' existing property portfolios.

Managed by Andrew Jackson, with Svitlana Gubriy as deputy manager, both funds will aim to outperform the FTSE EPRA/NAREIT Global Index by 2% per annum. Andrew Jackson and Svitlana Gubriy are the same portfolio management team behind the highly successful Select Property Fund (see notes to editors). The Global REIT funds will employ largely the same rigorous investment process to ensure the prospect of strong returns.

The Global REIT Fund (OEIC) qualifies for ISA investment and PEP transfers. It is also available via the appropriate wrapper solutions to Life and Pension clients and for direct investment in both the retail and institutional markets. The Fund will be available to both UK institutional and retail investors from 16 January 2007.

The Global REIT Focus Fund (SICAV) will be structured as a sub-fund forming part of Standard Life Investments' Luxembourg-domiciled SICAV range (see notes to editors). It will be available to both European institutional and retail investors from 25 January 2007.

Alex Watt, Managing Director – Property Investments, Standard Life Investments, said:

"The introduction of REIT legislation in the UK and Germany in early 2007 will significantly extend and enhance the existing global REIT market. In response to this, and demand from clients and advisers looking to diversify their property exposure globally, we are launching two Global REIT funds.

"Both funds have all the ingredients to be a real success. We have more than £12bn (€17.5bn) of direct property investment in over 500 properties across Europe, more than £1bn (€1.4bn) in quoted property assets, and a growing capability in both North America and Asia. This gives us both scale and expertise in the property sector. Coupled with this, we work in partnership with our global equity teams to identify undiscovered value in property related equities. This is a potent mix which few asset managers can match.

"The funds will take a largely unconstrained approach to regional asset allocation. This ensures we can invest in markets and property sectors where the best investment opportunities exist, rather than being tied to one region or market. Stock selection in the funds can therefore be as diverse as a Singaporean property development company to a German airport operation and development firm.

"The superior investment freedom afforded by such an approach means both funds offer the best balance of risk and reward. It also helps tackle a key issue for property investors – how to efficiently convert large cash holdings earmarked for property investment and avoid low relative returns which can dilute overall investment performance."