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managers eye global real estate

Fund managers have turned increasingly bullish on property


Sentiment on global property securities has been at bullish levels since April 2012, as calculated by the Expert Investor Europe Manager Sentiment Survey – a database of fund manager forecasts compiled in association with Skandia, which stretches back to January 2005.

The global property reading rose from 40 in April, to 50 last month (see chart). Such a reading – the highest recorded since December 2006 – indicates that a strong majority of fund managers expected the asset class to return more than 5% over the following 12 months.true

It also tallies with a poll of equity portfolio managers at the Expert Investor Nordic event, held at the Grand Hôtel in Stockholm on 21 May. When asked which asset class they favoured outside of equities, all of the fund managers said they would choose either property or land.

Pioneer Investments’ Andrew Arbuthnott, Martin Currie’s Divya Mathur and Cazenove Capital Management’s Julie Dean selected residential property, in Ireland, India and the UK respectively.

Leopold Arminjon, a European equity manager at Henderson Global Investors, favoured residential or commercial property in Istanbul, while American Century Investments’ Kevin Boreen selected land in the “cold North” which could become suitable for agriculture in warmer conditions.

The Expert Investor Europe Manager Sentiment Survey is based on data gathered monthly by Skandia from fund groups operating in Europe.

Participants in May were: Allianz Global Investors, Axa Framlington, BlackRock, F&C, Fidelity, GLG, Henderson, HSBC, Ignis, Investec, JP Morgan, M&G, Newton, Old Mutual Global Investors, Pictet, Schroders and SWIP. Platinum members can view full results from the latest survey here.