UK - Credit Suisse Asset Management is bullish on property.
CSAM believes the asset class should be pushed from an alternative investment to a core component of pension fund portfolios, despite recent fears surrounding oversupply.
Research shows that UK commercial property has outperformed other asset classes over 3, 5 and 10 years. The total return forecast for 2002 is 9%.
According to CSAM, the issue of illiquidity of property has been “overplayed”. It believes that property offers investors faced with FRS17 deficits benefits that are similar to bonds.
Head of property at CSAM, Glenn Newson, said: “As the number of retail funds grow, and as institutions increase weightings, the future for property as a core asset class looks well placed.
“If the sector can also overcome the reluctance by asset allocators for weightings to float within a prescribed band, rather than seek to dispose of property if the stockmarket falls, then property really will be a core component.”
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