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Rising property prices in Europe are no longer a given, says Aberdeen

Aberdeen Property Investors believes that the recent credit crunch will hasten the end of the current period of indiscriminate yield compression in Europe.

Aberdeen says investment managers will no longer be able to rely on rising property prices across the market to generate the bulk of their returns. Instead the market environment will favour active managers that employ a disciplined process and are far more selective when investing in property from both a regional and sector basis.

Furthermore, Aberdeen claims that the ability of managers to drive up the rental value of their holdings will be key in generating future returns.

From a regional perspective, Aberdeen continues to favour the Nordic region where GDP growth forecasts for 2007-11 continue to be amongst the highest in Europe.

The team says they also believes there are exciting opportunities in eastern European countries which are enjoying strong levels of economic growth.

Aberdeen Property Investors head of investment strategy Alessandro Bronda says: “The subprime lending crisis has increased the risk of global growth slowing. However, there continues to be a significant amount of liquidity targeting real estate exposure and a lack of suitable product. The end of the yield compression will mean that active management capabilities such as those of Aberdeen will become more important.”


Lord Cobham retires at S&W

Smith & Williamson deputy chairman Lord Cobham is retiring from full-time employment but will continue to work as an adviser for the firm. David Cobb becomes head of investment management and Geoff Windebank as finance director in a group reshuffle.

Resolution set for two Euro funds

Resolution Asset Management is setting up two funds for its restructured European equities desk. Jon Fearon will manage the international pan-European fund while Ian Ormiston will run European smaller companies.

James Hay adds BlackRock ML UK absolute alpha

James Hay has added a fund from BlackRock Merrill Lynch to its wrap, bringing the total to 1,246 funds from 50 providers. The fund is the BlackRock Merrill Lynch UK absolute alpha.James Hay regoinal sales director Shaun Sandiford says: “We are delighted to offer this exciting fund from one of the global giants of fund […]

Pearl hit for six by role reversal

As the Twenty20 Cricket World Cup kicks off this week, Resolution and Friends Provident pulled off a masterstroke of their own by hitting potential rivals Pearl for six as they continue to fend off those bidding to derail the creation of Friends Financial plc.


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