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Standard’s Select Property Fund breaks £1bn barrier

Standard Life Investments’ Select Property Fund has broken the £1bn barrier in less than 15 months since its launch on 13 October 2005, making it the fastest growing mutual fund in the UK during the first 11 months of 2006.

The retail accumulation unit price of the fund has risen 44.2 per cent since since launch. This is against a total return target of CPI +5 per cent p.a. over a rolling three-year period.

The Select Property Fund offers both institutional and retail investors access to UK and international property markets in North America, Europe and across Asia Pacific. The fund accesses commercial property markets via direct investment, unquoted specialist property products and stock exchange listed property vehicles globally.

Following changes in UK legislation in December 2005, the fund qualifies for ISA investment and PEP transfers. From launch, the fund has also been available via the appropriate wrapper solutions to life and pension clients and for direct investment in both the retail and institutional markets.

Structured as an authorised property unit trust, the fund aims to provide investors with a consistent level of income, while generating capital appreciation over the longer term.

Mutual Funds & Life Funds investment director Barry MacLennan says over the last few months the firm has increased exposure to US stocks generally, specifically East Coast financial and business offices.

He predicts supply of property, in the form of vacancy rates and the pace of development will continue to be the key drivers which affect returns. In both these respects he argues Europe offers interesting prospects particularly in the office and distribution warehousing sectors and we will be seeking opportunities for direct and listed investment in that market.

He says:

“The UK retail market is one of the most competitive in the world, so it’s a real achievement that the Select Property Fund has been the best selling fund for the greater part of 2006. Fund inflows remain strong as investors continue to seek property exposure offering diversification on a global scale. Demand has also been helped in no small way by impressive performance since launch. The Fund has benefited from both strong stock selection and broad geographical and sector diversification, enabling it to return an outstanding 44.2 per cent.”


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