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Overview

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Diversification is the main reason why pension schemes invest in property. Evidence shows that including property within a multi-asset portfolio can enhance the risk-adjusted returns of the whole portfolio. 

There are various routes to investing in property. The largest institutional investors can buy physical properties, although most pension schemes favour pooled funds or multi-manager solutions. These approaches bring risks of underperformance and illiquidity, while the high costs of trading means schemes rarely switch providers until it is too late. 

The unique nature of property as an asset class has limited the development of index-tracking solutions – until now. The Active Beta Property Fund is a pooled pension fund which aims to track the UK commercial property funds market. By taking small, active positions across a range of balanced property funds, we aim to deliver returns with a risk profile that is appropriate for UK pension schemes investing in property as a diversifying asset class. 

  Key Fund Details
Fund domiciled in: United Kingdom
Launch date: 30-06-2017
Benchmark: MSCI/AREF UK All Balanced Property Fund Index
Performance target: To perform in line with the benchmark with a tracking error of less than 1%

UK Commercial Property…not just shops and offices!

It is natural to assume commercial property investment is all about gaining exposure to shops and offices with these two sectors historically comprising the majority of a balanced property fund’s holdings. However this assumption no longer holds true.


Read more

Institutional Masterclass

 

In this series experts explain how the active beta strategy brings an index-tracking approach to UK commercial property. They also discuss how investors can benefit from an accessible and diversified approach, while mitigating some of the risks of investing with a single property manager.

Documents

Quick Access

All documents

Finding a home for property in DC pensions.pdf

(394KB) PDF

UK commercial property not just shops and offices June 2023.pdf

(376KB) PDF

Fund managers

Mark Bunney

Mark Bunney

Property Fund Manager

Mark Bunney, property fund manager, leads the UK indirect property team, co-manages the Active Beta strategies and has responsibility for a number of segregated client accounts and research into traditional unlisted property and social infrastructure funds.

Full profile
Tony Yu

Tony Yu

Property Fund Manager

Tony Yu, indirect property fund manager, is a member of the UK indirect property team, co-manages the Active Beta strategies and is responsible for developing portfolio strategies, overseeing the indirect property team’s fund-research effort and sourcing secondary-market deals.

Full profile

Contact

Senior Consultant Relations Manager

Carly Norris

Senior Consultant Relations Manager


carly.norris@aegonam.com

Consultant Relations Manager

Alexandra Ross

Consultant Relations Manager


alexandra.ross@aegonam.com