With the real estate change happening in London earlier this year, asset owners explained why there is an increasing interest in owning buildings, wind farms, and waste incinerators. . Padmesh Shukla, investment manager of £ 11 billion pension fund Transport for London, said real wealth in general offers strong portfolio diversification and many cases provide inflation protection and secure income.
A good example of the TfL pension fund’s real asset allocation is a broad infrastructure portfolio spanning the UK, Europe, North America, and emerging markets, from core strategies to core plus strategies to value-added strategies. Shukla also believes that when it comes to investment strategy, pooling provides broader diversification of real assets – whether real estate, private equity, or infrastructure – higher damage and loss, better risk-adjusted returns. However, he emphasized the challenge of quantifying and managing currency risk in such portfolios.
The £ 1.5 billion Lambeth Pension Fund has significantly less exposure to real assets, not only because it’s a smaller plan but also because it has become more reliant on real assets lately. Improve yields. However, Andrien Meyers, Head of Treasury and Pensions for the Lambeth Fund, told the CAMRADATA panel that he owns 5% private equity and 9% European commercial real estate. He also started investing in residential real estate in the UK