Property Investment Remains Top Choice For Pension Funds

Those seeking an alternative route to provide for their retirement appear to be mostly dependent on property investment as one of the best ways of doing so...

Those seeking an alternative route to provide for their retirement appear to be mostly dependent on property investment as one of the best ways of doing so, a new report from Towers Watson has suggested.

The insurance firm found that thanks to a recovery in commercial real estate in the past few months, steady yields have seen property investment currently account for 55 per cent of pension funds' alternative asset investment, having increased in popularity throughout 2010.

However, much of this activity has been focused on particular European, American and Asian cities that have reaped the best of any economic recoveries. The report revealed that over 80 per cent of assets managed by the top 50 real estate managers are invested in Europe and North America.

Global property adviser CB Richard Ellis has also seen a rise in property investment activity in the first three months of the year, stating in its Global Capital MarketView that the Value Index increased by 12 per cent over the quarter on a year-on-year basis.

- Wednesday 13 July 2011

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