Canadian pension funds increasingly turning to Canadian real estate as
source of income and long-term protection against inflation
MONTREAL, July 25, 2012 /CNW Telbec/ - Standard Life Investments, a
major global asset manager, today announced that the Standard Life Real
Estate Fund ("SLREF" or the "Fund") now has over CDN$1 billion in
assets under management. The Fund's latest acquisition is 8 West in
Real estate houses the economy
"Our Fund's milestone is symbolic of the growing importance of real
estate as a source of income and as a hedge against inflation for
Canadian pension fund investors. A strong real estate portfolio can
protect value through economic cycles because well-situated,
high-quality real estate literally houses the economy," stated Peter
Cuthbert, Head of Canadian Real Estate with Standard Life Investments
Since inception, the SLREF has earned an annualized return of 9.4%1, and has only ever had one negative annual return in its 29-year
history. Due to its limited use of debt and the fact that it seeks
investment returns primarily through income, the Fund has experienced
very low volatility of returns for its pension clients.
Not just a milestone, growing beyond the $1 billion mark reduces risk
and enables Standard Life Investments to seek out a greater spectrum of
opportunities for corporate funds looking for exposure to real estate
in the Canadian market.
Canada's real estate market perceived as a safe haven
Canada's aging population is increasingly looking for steady sources of
income and investment opportunities to plan for their retirements. Real
estate can provide just such an opportunity, particularly in Canada,
where the market exhibits strong fundamentals, and the economy and
outlook are healthier than in other G8 countries.
The Canadian real estate market has low vacancy rates overall and a
generally positive supply outlook. Thanks to these strong fundamentals,
the market is attracting global-minded investors and also contributing
to the shift many major institutional investors are making away from
public equity towards private placement.
Amidst global uncertainty, Canada is also faring better than many of its
international peers on the economic front with a more stable labour
market, a significantly lower debt load and a robust banking system
operating within a well-regulated environment.
"With many of our new clients, real estate has become a very important
asset class. Investors are attracted by this solution well suited for
today's volatile financial markets," said Roger Renaud, President of
Standard Life Investments in Canada. "We look forward to steadily
growing our real estate assets under management and asserting our
competitive position in this attractive market."
For more information on the Canadian real estate market, please consult
the latest white paper from Standard Life Investments, "The World Needs Canada: Why Canadian Real Estate is a Compelling
The SLREF has a large number of properties under management across
Canada, including a number of high-profile buildings. Backed by
significant capital commitments, Standard Life Investments anticipates
continuing investment in major Canadian real estate markets over the
balance of 2012.
The SLREF is available through Standard Life's Group Savings and
Retirement's Quality and Choice Investment Program.
SLIRE is a subsidiary of Standard Life Investments Inc. in Canada and
functions as the Canadian arm of the Standard Life Investments global
real estate group, one of Europe's largest real estate fund managers
with 450 properties under management.
About Standard Life Investments
Standard Life Investments Inc. has been providing investment management
services in Canada since 1973 and manages approximately CDN$33 billion1 of assets. Standard Life Investments Inc. is a subsidiary of
Edinburgh-based Standard Life Investments Limited, a major asset
manager and part of the Standard Life group that manages CDN$245.1
billion1 on behalf of clients worldwide.
1Gross of management fees as at December 31, 2011
SOURCE: STANDARD LIFE INVESTMENTS INC.
For further information:
Standard Life Investments Inc.
NATIONAL Public Relations