UK - Aberdeen Property Investors is urging schemes to increase property allocations and predicts they will return approximately 7.8% per annum over the next 30 years.
The Investment Property Databank said property has been the best-performing asset class over the past decade, returning 11.5% compared to the 6.6% posted by equities.
Providing yields remain unchanged going forward, it predicts that returns will be similar to the current property yield of 6.3% plus income growth of 2.5%, net of depreciation and costs.
Chief executive David Hunter said: “This performance, coupled with relatively low volatility and diversification attributes, more than justifies property’s place in a multi-asset investment portfolio.”
He added that schemes are increasingly turning to this asset class because of property’s strong long-term performance and trustees’ needs to ensure that solvency can be covered and future payouts sustained as funds mature.
The Pensions Regulator (TPR) has granted 11 master trusts extensions to apply for authorisation, as it confirms it has received 22 applications ahead of the 31 March deadline.
Aegon Master Trust, Fidelity Master Trust and Ensign have sent off their authorisation applications to The Pensions Regulator (TPR).
Self-administered pension funds spent £15bn on payments to pensioners in Q4 2018, but received just £12bn in contributions (net of refunds), Office for National Statistics (ONS) data reveals.
Aberdeen Standard Investments (ASI) and Gresham House are to team up to form a joint venture.