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Opinion: Inside View - Property provides new home for institutional assets.

Publication: Pensions Week
Publication Date: 04-OCT-04
Format: Online - approximately 740 words
Delivery: Immediate Online Access

Article Excerpt
Given the number of articles now being written about property performance, I doubt anybody is unaware of the fact that the asset class has outperformed equities and gilts over a three, five and 10 year time horizon. Perhaps what is less well known, however, is the consistency of returns which, according to the IPD Annual Index, averaged 10.7% over the last 10 years. This stems from the fact that the income component, averaging at 7.4%*, has been the main driver of total return every year except for 1997 and 1999, when it was marginally eclipsed by capital growth. Not only is this high income yield attractive to pension funds seeking...

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