Analysis: Brexit hasn’t dented continental confidence in UK – yet

In February, Dutch pension scheme PGGM announced it had bought a build-to-rent development site in Bristol, UK, as part of a newly formed partnership with Legal & General Capital (LGC).  While the deal wasn’t the first of its kind in the UK (in 2013, residential landlord Grainger entered a partnership with APG, another Dutch pension fund), some industry experts predicted that it could be the start of a new trend. However, in light of the June 23 ‘Brexit’ referendum, could such forecasts have been premature? Last month, a Preqin survey of 90 institutional investors with exposure to UK real estate indicated 57% of respondents would invest less in the UK over the next 12 months. Speaking to Funds Europe, a spokesperson for PGGM said that quite to the contrary, the firm intended to further develop its partnership with L&G moving forward. “While we will look closely at developments, there is no question of PGGM moving away entirely from the UK,” they said. “We think investments in UK real estate will continue to provide us with a stable cash flow, vital for paying out pensions in the long term.” PGGM’s sentiments are shared by Menno Middeldorp, senior investment strategist at APG. “While the referendum undoubtedly has the potential to change the UK, and Europe, it’s still too early to tell – and while the UK may not be part of Europe in future, it remains part of the world,” he said. “Save for an unexpected economic catastrophe in the UK, there’s nothing on the medium-term horizon we can’t sit through, or that will cause us to fundamentally reappraise the UK.” Moreover, despite numerous UK property fund suspensions in recent weeks, there are signs foreign buyers are taking advantage of the weak pound to snap up British assets, according to Henderson. The firm says that despite a wave of redemptions from retail investors, institutions have pumped £1 billion (€1.2 billion) net into its funds since June 23. ©2016 funds europe

Sponsored Profiles

SPONSORED FEATURE: Investing for income

May 17, 2017

Portfolio Manager Thomas Kruse examines the findings from Pioneer Investments’ survey on income investing and outlines ways of achieving a target income.

SPONSORED ARTICLE: A radical solution to KYC concerns

May 17, 2017

The 1MDB affair shows that lax know-your-customer and due-diligence procedures are a major risk, says Paolo Brignardello, head of product management and marketing, Fundsquare. New solutions are...

SPONSORED FEATURE: AIFMD - What does Brexit mean?

Apr 18, 2017

An open discussion between funds industry experts and initiated by SGG Luxembourg took place in London to examine  the implications of Brexit for UK fund managers marketing to the EU.

SPONSORED FEATURE: Luxembourg fund reporting – CRS vs FATCA

Apr 18, 2017

Luxembourg funds need clear procedures for CRS compliance, writes Andrew Knight, Partner at M Partners, a member of the Maitland network of law firms.

Executive Interviews

INTERVIEW: Finding managers that can (and do)

Apr 18, 2017

Fabrice Kremer, a fund selector at Banque de Luxembourg Investments, has berated fundamental managers for failing to beat indices, but he remains committed to active funds. He speaks to Nick...

JERSEY INTERVIEW: ‘A steady sort of place’

Mar 21, 2017

The chief executive of Jersey Finance is keen to portray the island as a stable, trustworthy jurisdiction. He talks to George Mitton.



May 17, 2017

With such an intangible product, it can be hard for asset managers to communicate what they do. Having personality and connecting with customer aspirations may be the key, our branding roundtable hears.

ROUNDTABLE: The issue is perception

Mar 21, 2017

Our panel discuss tax transparency, the elegance of private placement and why Jersey could do more to promote itself. Chaired by Tom Cowsill in Saint Helier.